Question
Adjustments: A debtor, S Smith, who owed R233.10, has been declared insolvent. The entire debt is to be written off. The provision for doubtful debts
Adjustments:
A debtor, S Smith, who owed R233.10, has been declared insolvent. The entire debt is to be written off.
The provision for doubtful debts is to be adjusted to 2.50% of book debts.
Balances as at 31 January 2009
- Debtors control - R6660.00
Provision for doubtful debts - R99.90
Please explain if It should be subtract the bad debt from debtors control first or should it go to another account? Also, assist with the calculation for the adjustment of doubtful debts to 2.50% of the book debts.
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Since the debtor S Smith has been declared insolvent and the entire debt of R23310 is to be ...
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Financial Accounting
Authors: Anne Britton, Chris Waterston
5th edition
273719300, 273719304, 978-0273719304
