Rahim is a trader. His financial year ends on 30April. He maintains a provision for doubtful debts of 2 ½% of the trade receivables at the end of each year.

On 1 May 2015 Rahim provision for doubtful debts amounted to $474. On 30^th April 2016 his credit customers owed $17,440.

REQUIRED:

2) Prepare an extract from the statement of financial position on 30April 2016 to show the Trade Receivables.

On 10^th May 20 Rahim received a cheque, $49, from Mr Kim, whose account had been written off in 2014.

5) Prepare the ledger entries to record the above transaction.

Answer rating: 100% (QA)

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