- At 31 December 20X2 Bunting Co's receivables totalled $400,000 and an allowance for receivables of $50,000 had been brought forward from the year ended 31 December 20x1. It was decided to write off debts totalling $38,000. The allowance for receivables was to be adjusted to the equivalent of 10% of the receivables. What charge for receivables expense should appear in Bunting Co's statement of profit or loss for the year ended 31 December 20X2?

- At 31 December 20X2 Bunting Co's receivables totalled $400,000 and an allowance for receivables of $50,000 had been brought forward from the year ended 31 December 20x1. It was decided to write off debts totalling $38,000. The allowance for receivables was to be adjusted to the equivalent of 10% of the receivables. What charge for receivables expense should appear in Bunting Co's statement of profit or loss for the year ended 31 December 20X2?

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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Explain within calculation