Adjustments: A debtor, S Smith, who owed R233.10, has been declared insolvent. The entire debt is to
Fantastic news! We've Found the answer you've been seeking!
Question:
Adjustments:
A debtor, S Smith, who owed R233.10, has been declared insolvent. The entire debt is to be written off.
The provision for doubtful debts is to be adjusted to 2.50% of book debts.
Balances as at 31 January 2009
- Debtors control - R6660.00
Provision for doubtful debts - R99.90
Please explain if It should be subtract the bad debt from debtors control first or should it go to another account? Also, assist with the calculation for the adjustment of doubtful debts to 2.50% of the book debts.
Related Book For
Posted Date: