A business started trading on 1 January 2014. During the two years ended 31 December 2014 and
Question:
A business started trading on 1 January 2014. During the two years ended 31 December 2014 and 2015 the following debts were written off to the Bad Debts Account on the dates stated:
On 31 December 2014 the total accounts receivable was £104,000. It was decided to make an allowance for doubtful debts of £3,120.
On 31 December 2015 the total accounts receivable was £116,000. It was decided to make an allowance for doubtful debts of £3,480.
You are required to show:
(1) The Bad Debts Account and the Allowance for Doubtful Debts Account for each of the two years.
(2) The relevant extracts from the Statements of Financial Position as at 31 December 2014 and 2015.
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Related Book For 
Frank Woods Business Accounting Volume 1
ISBN: 9781292084664
13th Edition
Authors: Alan Sangster, Frank Wood
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