A Ltd controls B Ltd$.$ On the control date, B Ltd$$s accounts receivable had a carrying amount of $$52,000,$ while the fair value was $$54,000.$ At the control date, the consolidation adjustment for accounts receivable will include the following line:

Question $1$Answer

a$.$

Dr Provision for doubtful debts $$2,000$

b$.$

Cr Provision for doubtful debts $$2,000$

c$.$

Dr Accounts receivable $$2,000$

d$.$

Cr Fair value reserve $$2,000$