Home Help Ltd, a not-for-profit organisation that provides assistance for elderly care, completed an age analysis of
Question:
Home Help Ltd, a not-for-profit organisation that provides assistance for elderly care, completed an age analysis of its accounts receivable on 30 June. It was estimated an allowance for doubtful debts of \($8\) 750 was needed to report accounts receivable as the estimated collectable amount in the statement of financial position. Ignore GST.
Required:
(d) Prepare the entry to record bad debts expense assuming that the Allowance for Doubtful Debts account currently has a \($1650\) credit balance.
(e) Prepare the entry to record bad debts expense assuming that the Allowance for Doubtful Debts account currently has a \($720\) debit balance.
(f) Prepare the entry to write off an account receivable from M.Smith for $1200.
(g) Assume that before the entry recorded in requirement C above, the net amount of accounts receivable was \($112\) 400 and the allowance for doubtful debts was \($8750\). Calculate the net amount of accounts receivable after recording the write off of M.Smith’s account. Briefly explain how you arrived at this amount.
Step by Step Answer:
Accounting
ISBN: 9780730382737
11th Edition
Authors: John Hoggett, John Medlin, Keryn Chalmers, Claire Beattie