Question 5 Alpha Ltd has trade receivable list of 351,999 at 30 June 2023 as shown...

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Question 5 Alpha Ltd has trade receivable list of £351,999 at 30 June 2023 as shown below: Outstanding for less than 1 month Outstanding for 1 month to 3 months Outstanding for more than 3 months CT Ltd £178,800 £100,999 £66,600 £5,600 CT Ltd has recently ceased operation and the chance for Alpha Ltd to recover the amount is slim to none. In addition to this irrecoverable amount, the directors of Alpha Ltd are concerned that some of its credit customers might run into difficulties amid the recession and decide to make a general allowance for doubtful debts of 3% on balances outstanding for more than 3 months at 30 June 2023. The company has never previously made an allowance against its trade receivables. Required: (a) Prepare double entries to record the bad and doubtful debts. (b) Prepare the relevant extracts to be shown in the statement of profit or loss, statement of financial position and notes to the financial statements. Question 5 Alpha Ltd has trade receivable list of £351,999 at 30 June 2023 as shown below: Outstanding for less than 1 month Outstanding for 1 month to 3 months Outstanding for more than 3 months CT Ltd £178,800 £100,999 £66,600 £5,600 CT Ltd has recently ceased operation and the chance for Alpha Ltd to recover the amount is slim to none. In addition to this irrecoverable amount, the directors of Alpha Ltd are concerned that some of its credit customers might run into difficulties amid the recession and decide to make a general allowance for doubtful debts of 3% on balances outstanding for more than 3 months at 30 June 2023. The company has never previously made an allowance against its trade receivables. Required: (a) Prepare double entries to record the bad and doubtful debts. (b) Prepare the relevant extracts to be shown in the statement of profit or loss, statement of financial position and notes to the financial statements.

Answer rating: 100% (QA)

Sure here are the double entries to record the bad and doubtful debts Journal entry 1 Date Account T... View the full answer