Question
On January 1, 2016 S&S Company had $7 500 balance in its Provision for Bad Debts Account. The company's policy is to provide 5% of
On January 1, 2016 S&S Company had $7 500 balance in its Provision for Bad Debts Account.
The company's policy is to provide 5% of debtors as bad debts provision. The company's year ended December 31.
The debtors for the following 3 years were as follows:
December 31, 2016 $180 000
December 31, 2017 $135 000
December 31, 2018 $145 000
a) Prepare the Provision for Bad Debts Account for the three years.
b) Prepare the Income Statement extract for the three years.
c) Prepare the Balance Sheet extract for the last two years
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Financial & Managerial Accounting
Authors: Carl Warren
12th Edition
1285534646, 978-1133952428
