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Dawn Shop commenced its business operations on 1 September 2017. During the year, the business made credit sales of $140,000 and gave a cash discount
Dawn Shop commenced its business operations on 1 September 2017. During the year, the business made credit sales of $140,000 and gave a cash discount of $11,400 to credit customers. A cash amount of $71,300 was also received from these debtors during the financial year. Goods of the amount of $9,000 were returned by some credit customers. Dawn wishes to set the allowance at 8% of the receivables as at 31 August 2018. Which of the following are the correct journal entries to record the impairment loss on receivables for the year ended 31 August 2018? $3,100 O 1) DR Impairment loss on receivables expense CR Allowance for Impairment on Receivables $3,100 $3,330 O2) DR Impairment loss on receivables expense CR Allowance for Impairment on Receivables $3,330 $3,546 3) DR Impairment loss on receivables expense CR Allowance for Impairment on Receivables $3,546 $3,864 4) DR Impairment loss on receivables expense CR Allowance for Impairment on Receivables $3,864
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