On 30 June, the end of its financial year, Aarav Ltd completed an age analysis of its accounts receivable and determined that an allowance for doubtful debts of $12 320 was needed in order to report accounts receivable at their estimated collectable amount in the Balance Sheet. Required (a) Prepare the general journal entry to record bad debts expense assuming that the Allowance for Doubtful Debts account currently has a $1940 credit balance (narration not required). (b) Prepare an entry to write off an account receivable from V. Vijay for $781 (narration not required).
On 30 June, the end of its financial year, Aarav Ltd completed an age analysis of its accounts receivable and determined that an allowance for doubtful debts of $12 320 was needed in order to report accounts receivable at their estimated collectable amount in the Balance Sheet. Required (a) Prepare the general journal entry to record bad debts expense assuming that the Allowance for Doubtful Debts account currently has a $1940 credit balance (narration not required). (b) Prepare an entry to write off an account receivable from V. Vijay for $781 (narration not required).
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 5PA: The following accounts receivable information pertains to Luxury Cruises. A. Determine the estimated...
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