At 31 December 2004 a company’s trade receivables totalled $864,000 and the allowance for doubtful debts was
$48,000.
It was decided that debts totalling $13,000 were to be written off, and the allowance for doubtful debts adjusted to
five per cent of the receivables.
What figures should appear in the balance sheet for trade receivables (after deducting the allowance) and in the
income statement for the total of bad and doubtful debts?
Income statement Balance sheet
Bad and doubtful debts Net trade receivables
$ $
A 8,200 807,800
B 7,550 808,450
C 18,450 808,450
D 55,550 808,450
B
864,000 – 13,000 = 851,000 – 5% = 808,450
13,000 – (48,000 – 42,550) 7,550 | 
发表于 2008-5-8 14:10
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