FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose that company ABC Ltd. has a doubtful debt provision of 2000 at 31/12/2019. During 2020, a receivable for 1500 is written off as a

Suppose that company ABC Ltd. has a doubtful debt provision of 2000 at 31/12/2019. During 2020, a receivable for 1500 is written off as a bad debt and the provision for doubtful debt is increased to 3000 at 31/12/2020. What is the effect of these transactions on the profits for 2020?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Financial Accounting

Authors: Charles T. Horngren, Jr. Harrison, Walter T.

2nd Edition

0133118207, 978-0133118209

More Books

Students also viewed these Accounting questions

Question

★★★★★
The income statement of Zamora Inc. reported the following condensed information. Zamora??s balance sheet contained these comparative data at December 31. Zamora has no depreciable assets. Accounts...

Answered: 1 week ago

Question

★★★★★
Sound Tek Inc. manufactures electronic stereo equipment. The manufacturing process includes printed circuit (PC) board assembly, final assembly, testing, and shipping. In the PC board assembly...

Answered: 1 week ago

Question

★★★★★
Self-efficacy may be viewed as a trait-like characteristic, as a state-like characteristic or as a state. How is this possible? Provide one example from everyday working life for each of these three...

Answered: 1 week ago

Question

★★★★★
Wilkins Food Products, Inc. acquired a packaging machine from Lawrence Specialists Corporation. Lawrence completed construction of the machine on January 1, 2009. In payment for the machine Wilkins...

Answered: 1 week ago

Question

★★★★★
ESAs are credit-only accounts and thus their holders are required to ensure that sufficient liquidity is available at all times to settle financial transactions. O True False

Answered: 1 week ago

Question

★★★★★
willing to invest today to launch this product? Your production team thinks they can get the job done today for $489,000, which you will pay for immediately. What is the Net Present Value (NPV) of...

Answered: 1 week ago

Question

★★★★★
Suppose a lost-time claim has $18,350in incurred loss. Further assume theemployer is in a NCCI state. How much primary loss is there with this particular claim?

Answered: 1 week ago

Question

★★★★★
A professor sets the gradebook to drop some of the students lowest grades on assignments as a gift. The teacher is removing something undesirable that has the effect of strengthening a target.Is the...

Answered: 1 week ago

Question

★★★★★
You are a consulting team (internal or external) who specialize in enhancing business performance through a focus on process management. You have been invited to assist a company or business unit...

Answered: 1 week ago

Question

★★★★★
RQ2: Can an aggressive cost cutting program undermine a company's differentiation strategy? Why? In your justification, include an example (real or hypothetical). Make sure you cite any references.

Answered: 1 week ago

Question

★★★★★
If you were an operations manager, should you be concerned with piracy? Explain. What precautions could be taken to secure your cargo? Please explain in details so I can understand. Thank you

Answered: 1 week ago

Question

★★★★★
In your own words, summarize the primary objectives of unions.

Answered: 1 week ago

Question

★★★★★
If you were asked to explain why various types of people are on the employers bargaining team, what reasons would you give for (a) the company lawyer, (b) the director of industrial relations, (c) a...

Answered: 1 week ago

Question

★★★★★
What roles do labour relations boards serve in labourmanagement relations?

Answered: 1 week ago

Previous Question Next Question