As of 31 Dec 2009, ICE Ltd has US$1,000,000 debtors over 6-months (but less than 1 year). According to the company's policies, these are considered as doubtful debts and subject to a general provision of 50% of total amount. As of 31 Dec 2010, these debts are still outstanding on ICE's balance sheet and the general provisions are still the same as per the company's policies. Tax regulations allow a maximum provision of 30% for the debts over 6-months and 50% for the debts over 1 year but less than 2 years. 

Determine journal entries.

Answer rating: 100% (QA)

To determine the journal entries for the doubtful debts we need to consider the provisions based on ... View the full answer