Mr. Martin commences business on January 1, 2018. His debtors at December 31, 2019, were $15 000 December 31, 2020, were $12 000 December 31, 2021, were $14 000 A provision for bad debts of 5 per cent is to be created on debts at the end of each year. Use the information above to answer the following questions. i. Show the Provisions for Bad Debts Account for EACH of the three years. ii. Show the Profit and Loss extract for the three years. iii. Show the Balance Sheet extract for the three years.
Mr. Martin commences business on January 1, 2018. His debtors at December 31, 2019, were $15 000 December 31, 2020, were $12 000 December 31, 2021, were $14 000 A provision for bad debts of 5 per cent is to be created on debts at the end of each year. Use the information above to answer the following questions. i. Show the Provisions for Bad Debts Account for EACH of the three years. ii. Show the Profit and Loss extract for the three years. iii. Show the Balance Sheet extract for the three years.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Mr. Martin commences business on January 1, 2018. His debtors at
December 31, 2019, were $15 000
December 31, 2020, were $12 000
December 31, 2021, were $14 000
A provision for
Use the information above to answer the following questions.
i. Show the Provisions for Bad Debts Account for EACH of the three years.
ii. Show the
iii. Show the
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