J. Blane commenced business on 1 January 2015 and prepares her financial statements to 31 December...
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J. Blane commenced business on 1 January 2015 and prepares her financial statements to 31 December every year. For the year ended 31 December 2015, bad debts written off amounted to $1,400. It was also found necessary to create an allowance for doubtful debts $2,600. In 2016, debts amounting to $2,200 proved bad and were written-off. J. Sweeny, whose debt of $210 was written off as bad in 2015, settled her account in full on 30 November 2016. As at 31 December 2016 total debts outstanding were $92,000. It was decided to bring the provision up to 4% of this figure on that date. In 2017, $3,800 of debts were written-off during the year, and another recovery of $320 was made in respect of debts written-off in 2015. As at 31 December 2017, total debts outstanding were $72,000. The allowance for doubtful debts is to be changed to 5% of this figure. You are required to show the years 2015, 2016 and 2017, the A. Bad Debts Account. B. Bad Debts Recovered Account. C. Allowance for Doubtful Debts Account. D. Extract from the Income Statement. J. Blane commenced business on 1 January 2015 and prepares her financial statements to 31 December every year. For the year ended 31 December 2015, bad debts written off amounted to $1,400. It was also found necessary to create an allowance for doubtful debts $2,600. In 2016, debts amounting to $2,200 proved bad and were written-off. J. Sweeny, whose debt of $210 was written off as bad in 2015, settled her account in full on 30 November 2016. As at 31 December 2016 total debts outstanding were $92,000. It was decided to bring the provision up to 4% of this figure on that date. In 2017, $3,800 of debts were written-off during the year, and another recovery of $320 was made in respect of debts written-off in 2015. As at 31 December 2017, total debts outstanding were $72,000. The allowance for doubtful debts is to be changed to 5% of this figure. You are required to show the years 2015, 2016 and 2017, the A. Bad Debts Account. B. Bad Debts Recovered Account. C. Allowance for Doubtful Debts Account. D. Extract from the Income Statement.
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A Bad Debts Account Year Debit Credit B Bad Debts Recovered Account Year De... View the full answer
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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