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kindly assist on the below a)Kamangura commenced business on 1 January 2022 and prepares her financial statements to 31 December every year. For the year
kindly assist on the below
a)Kamangura commenced business on 1 January 2022 and prepares her financial statements to 31 December every year. For the year ended 31 December 2022 , bad debts written off amounted to Kshs. 28,000 . It was found necessary to create an allowance for doubtful of Kshs, 52,000 . In 2023 , debts amounting to Kshs, 44,000 proved to be bad and were written-off. J Nekesa, whose debt of Kshs. 4,200 was written off as bad in 2006, settled her account in full on 30 November 2023. As at 31 December 2023 total debts outstanding were Ksh5, 1,840,000, It was decided to bring the provision up to 4% of this figure on that date. In 2008, Kshs, 76,000 of debts were written-off during the year, and another recovery of Kshs. 6,400 was made in respect of debts written-off in 2006. As at 31 December 2024, total debts outstanding were Kshs. 1,440,000. The allowance for doubtful debts is to be charged to 5% of this figure. You are required to show for the years 2022,2023 and 2024 , the (a) Bad Debts Account (b) Bad Debts Recovered Account (c) Allowance for Doubtful Debts Account (d) Extracts from the Income Statement and Statement of financial positions (12 Marks) Step by Step Solution
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