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On 30 June 2021 a companys allowance for doubtful receivables was $80,000. On 30 June 2022 gross trade receivables totalled $1,034,000. It was decided as
On 30 June 2021 a companys allowance for doubtful receivables was $80,000. On 30 June 2022 gross trade receivables totalled $1,034,000. It was decided as of 30 June 2022 to write off debts totalling $74,000 and then to adjust the allowance for doubtful receivables to be 5% of the remaining gross trade receivables. This 5% allowance is based on past data. What is the amount of the doubtful debt expense that should appear in 2022s income statement for these items?
a.
$45,700
b.
$124,000
c.
$48,000
d.
$42,000
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