For the year ended 31 December 2006, L Cornelius decides to create a provision for doubtful debts
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For the year ended 31 December 2006, L Cornelius decides to create a provision for doubtful debts equal to 5% of debtors at the year-ends. The debtors figure before bad debts were subtracted was £18,800. Bad debts for the year were £560.
Show the provision for doubtful debts account for the year ended 31 December 2006 and provide an extract from the statement of financial position for the end-of-year statement of financial position.
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Related Book For
Frank Woods Business Accounting Basics
ISBN: 9780273725008
1st Edition
Authors: Frank Wood, Mr David Horner
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