Question
The Liming Deck After the first year of operations, The Liming Deck had $15,000 in credit sales. The following debtors have been outstanding for nine
The Liming Deck
After the first year of operations, The Liming Deck had $15,000 in credit sales. The following debtors have been outstanding for nine (9) months or more.
| November 15, 2018 | PW Accounting Co. | $ 500.00 |
| December 9, 2018 | John Doe | $ 1,000.00 |
| January 15, 2019 | MHS Holdings | $ 200.00 |
1. It has been decided to write off these amounts.
A) Show the journal entries which would write off these amounts in The Liming Decks books.
B) As a result of debtors defaulting on payments, The Liming Deck has decided to make an annual provision of $5,000 to reduce the effect of bad debts. Show the journal entries which would record the annual provision
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Loss Control Auditing A Guide For Conducting Fire Safety And Security Audits
Authors: E. Scott Dunlap
2nd Edition
103244293X, 978-1032442938
