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Newell's receivables ledger control account shows a balance at the end of the year of $58,200 before making the following adjustments: (i) Newell wishes to
- Newell's receivables ledger control account shows a balance at the end of the year of $58,200 before making the following adjustments:
- (i) Newell wishes to write off debts amounting to $8,900 as he believes they are irrecoverable.
- (ii) He also wishes to make specific allowance for Carroll's debt of $1,350 and Juff's debt of $750.
- (iii) He wishes to maintain a general allowance of 3% of the year end receivables balance. Newell's allowance for receivables at the last year end was $5,650.
- What is the charge to the statement of profit or loss in respect of the above?
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Financial Accounting and Reporting a Global Perspective
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
4th edition
978-1408066621, 1408066629, 1408076861, 978-1408076866
