At 31 December 2022 a company's receivables totaled $400,000 and an allowance for receivables of $50,000 had been brought forward from the year ended 31 December 2021. It was decided to write off debts totaling $38,000 and to adjust the allowance for receivables to 10% of the receivables total. What expenses for irrecoverable debts and receivables allowance should appear in the company's income statement for the year ended 31 December 2022?

At 31 December 2022 a company's receivables totaled $400,000 and an allowance for receivables of $50,000 had been brought forward from the year ended 31 December 2021. It was decided to write off debts totaling $38,000 and to adjust the allowance for receivables to 10% of the receivables total. What expenses for irrecoverable debts and receivables allowance should appear in the company's income statement for the year ended 31 December 2022?

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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