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11.12 Top Co has total receivables outstanding of $280,000. The accountant believes that approximately 1% of these balances will not be collected, so wishes to make an allowance of $28,000. No previous allowance has been made for receivables. Which of the following is the correct double entry to create this allowance? DEBIT CREDIT Irrecoverable debts Allowance for receivables A Allowance for receivables B. Receivables C Irrecoverable debts Receivables

11.12 Top Co has total receivables outstanding of $280,000. The accountant believes that approximately 1% of these balances will not be collected, so wishes to make an allowance of $28,000. No previous allowance has been made for receivables. Which of the following is the correct double entry to create this allowance? DEBIT CREDIT Irrecoverable debts Allowance for receivables A Allowance for receivables B. Receivables C Irrecoverable debts Receivables

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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11.12 op Co has total receivables outstanding of $280,000. The accountant believes that approximately 1% of these balances will not be collected, so wishes to make an allowance of $28,000. No previous allowance has been made for receivables. arks Which of the following is the correct double entry to create this allowance? DEBIT CREDIT A Irrecoverable debts Allowance for receivables Allowance for receivables Receivables C Irrecoverable debts Receivables
Transcribed Image Text:11.12 op Co has total receivables outstanding of $280,000. The accountant believes that approximately 1% of these balances will not be collected, so wishes to make an allowance of $28,000. No previous allowance has been made for receivables. arks Which of the following is the correct double entry to create this allowance? DEBIT CREDIT A Irrecoverable debts Allowance for receivables Allowance for receivables Receivables C Irrecoverable debts Receivables
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