The balance for account receivables for the year ended 31^st December 2019 was $240,000. The Allowance for doubtful debts account at the beginning of the year had a balance of $9,600. 

One of the debtors had died during the month of December and his debt of $20,000 was written off at the end of the year. 

The company decided to give an allowance for doubtful debts of 5% at the year end on 31^st December 2019.

Required:

1. Calculate the balance for the account receivables to be reflected under current assets in the statement of financial position.
2. Calculate the amount of the allowance to be reflected in the statement of profit or loss, indicating whether it will be under expenses or incomes.

(Include your answer in the textbook or attach a workbook)

Answer rating: 100% (QA)

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