Acca financial Accounting (FA) Study Text ac ca (FA)

What was the total irrecoverable debt expense for the year? 

$________ 

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Chapter 23 

KAPLAN PUBLISHING

 

471 

35  Doris currently has a receivables balance of $47,800 and an allowance for 

receivables of $1,250. She has just received $150 in respect of half of a 

debt that she had made an allowance against. She now believes the other 

half of the debt to be bad and wants to write it off. She also wants to 

increase the allowance for receivables to $1,500. 

What is the total charge to the statement of profit or loss in respect 

of these items? 

$________ 

 36  At the year end, Harold had a trade receivables balance of $100,000 and 

an allowance for receivables of $5,000. He has not yet accounted for a 

receipt of $500 in respect of a debt which he had previously made an 

allowance against or a receipt of $1,000 in respect of a debt which had 

been written off in the previous year. Harold wishes to reduce the 

allowance for receivables by $1,965.