19.4A A business, which started trading on 1 January 2022, adjusted its allowance for doubtful debts at the end of each year on a percentage basis, but each year the percentage rate is adjusted in accordance with an analysis of the business's actual debt collection experience. The following details are available for the three years ended 31 December 2022, 2023 and 2024: Bad debts written off year to 31 Trade receivables at 31 December after December bad debts written off 2022 2023 2024 £ 12,380 22,640 31,700 £ 92,000 136,000 169,000 Percentage allowance for doubtful debts 4% 5% 2.5% You are required to show: a. The allowance for doubtful debts accounts and bad debts expense accounts for each of the three years. b. Balance sheet extracts as at 31 December 2022, 2023 and 2024.

19.4A A business, which started trading on 1 January 2022, adjusted its allowance for doubtful debts at the end of each year on a percentage basis, but each year the percentage rate is adjusted in accordance with an analysis of the business's actual debt collection experience. The following details are available for the three years ended 31 December 2022, 2023 and 2024: Bad debts written off year to 31 Trade receivables at 31 December after December bad debts written off 2022 2023 2024 £ 12,380 22,640 31,700 £ 92,000 136,000 169,000 Percentage allowance for doubtful debts 4% 5% 2.5% You are required to show: a. The allowance for doubtful debts accounts and bad debts expense accounts for each of the three years. b. Balance sheet extracts as at 31 December 2022, 2023 and 2024.

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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