In a new business during the year ended 31 December 2017 the following debts are found...

Transcribed Image Text:

In a new business during the year ended 31 December 2017 the following debts are found to be bad, and are written-off on the dates shown: Date 31 May 30 September 30 November Debtor T. Smith G. Lamb Ltd G. Percy Amount £700 £1,100 £600 On 31 December 2017 the schedule of remaining accounts receivable totalling £25,000 is examined and it is decided to make an allowance for doubtful debts of £1,250. You are required to show: (a) The Bad Debts Account, and the Allowance for Doubtful Debts Account. (b) The charge to the Statement of Profit or Loss. (c) The relevant extracts from the Statement of Financial Position as at 31 December 2017. In a new business during the year ended 31 December 2017 the following debts are found to be bad, and are written-off on the dates shown: Date 31 May 30 September 30 November Debtor T. Smith G. Lamb Ltd G. Percy Amount £700 £1,100 £600 On 31 December 2017 the schedule of remaining accounts receivable totalling £25,000 is examined and it is decided to make an allowance for doubtful debts of £1,250. You are required to show: (a) The Bad Debts Account, and the Allowance for Doubtful Debts Account. (b) The charge to the Statement of Profit or Loss. (c) The relevant extracts from the Statement of Financial Position as at 31 December 2017.

Answer rating: 100% (QA)

a Bad Deb ts Account Deb it 31 May T Smith 700 30 Septembe... View the full answer