Question
High-Performance Sports Pty Ltd has adopted the Allowance for Doubtful Debts Method. The Allowance for Doubtful Debts as at 30 June 2021 was $15,000 credit
High-Performance Sports Pty Ltd has adopted the Allowance for Doubtful Debts Method. The Allowance for Doubtful Debts as at 30 June 2021 was $15,000 credit (CR). The write-off of bad debts for the 2020 2021 financial year was $12,000. The Allowance for Doubtful Debts adjusting entry as at 30 June 2021 was $11,000. The financial year is from 1 July 2020 to 30 June 2021 (Disregard GST)
Required:
What was the Opening Balance in the Allowance for Doubtful Debts as at 1 July 2020?
Group of answer choices
$16,000 Credit (CR)
$11,000 Debit (DR)
$14,000 Debit (DR)
$11,000 Credit (CR)
$16,000 Debit (DR)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Managerial Accounting Tools for business decision making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
6th Edition
978-0470477144, 1118096894, 9781118214657, 470477148, 111821465X, 978-1118096895
