Question
At 31st December 2009 a company's receivables totalled $400,000 and an allowance for irrecoverable debts of $50,000 had been brought forward from the year ended
At 31st December 2009 a company's receivables totalled $400,000 and an allowance for
irrecoverable debts of $50,000 had been brought forward from the year ended
31st December 2008.
It was decided to write off debts totalling $38,000 and to adjust the allowance for
irrecoverable debts to 10% of the receivables.
What charge for bad and doubtful debts should appear in the company
'
s income
statement for the year ended 31st December 2009?
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Accounting
Authors: Charles T Horngren, Walter T Harrison
9th Edition
132959674, 978-0132569057
