The statement of financial position as at 31 December 20X2 of Zoom Products Ltd included: Trade

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The statement of financial position as at 31 December 20X2 of Zoom Products Ltd included:
£
Trade receivables...............................85,360
The financial statements for the year ended 31 December 20X2 included a provision for doubtful debts at 31 December 20X2 of 3 per cent of the balance outstanding from credit customers. During 20X2, the company's sales totalled £568,000, of which 90 per cent, in value, was on credit and £510,150 was received from credit customers in settlement of debts totalling £515,000.
In addition, £3,000 was received from J. Dodds in a settlement of a debt that had been written off as bad in 20X2; this receipt has been credited to J. Dodds's account in the sales' ledger.
On 30 December 20X3, the following outstanding debts were written off as bad:
J. white........................................................£600
K. Black................................................... £2,000
Entries relating to bad debts are passed through the provision for doubtful debts account, whose balance at 31 December 20X3 is to be 3 per cent of the amount due to the company from credit customers at that date.
Required
a. Write up the provision for doubtful debts account for the year ended 31 December 20X3, bringing down the balance at 1 January 20X4.
b. Prepare a computation of the amount to be shown as trade receivables in the company's statement of financial position at 31 December 20X3.
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Related Book For  answer-question

Introduction To Financial Accounting

ISBN: 978-0077138448

7th edition

Authors: Anne Marie Ward, Andrew Thomas

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