Wadsworth Ltd's trade receivables at 31 December were £38,000, including an amount of £4,000 owed by Clark Ltd. However, the company was notified that Clark Ltd is being liquidated and that none of the debt owing to Wadsworth Lld will be received. Which of the following statements is true? Select one answer. Wadsworth Ltd's trade receivables at 31 December should be shown on the statement of financial position at £34,000 and no amount charged to the statement of profit or loss for bad debts Wadsworth Ltd's trade receivables at 31 December should be shown on the statement of financial position at £34,000 and £4,000 charged to the statement of profit or loss as a bad debt Wadsworth Ltd's trade receivables at 31 December should be shown on the statement of financial position at £38,000 and no amount charged to the statement of profit or loss for bad debts Wadsworth Ltd's trade receivables at 31 December should be shown on the statement of financial position at £38,000 and £4,000 charged to the statement of profit or loss as a bad debt
Wadsworth Ltd's trade receivables at 31 December were £38,000, including an amount of £4,000 owed by Clark Ltd. However, the company was notified that Clark Ltd is being liquidated and that none of the debt owing to Wadsworth Lld will be received. Which of the following statements is true? Select one answer. Wadsworth Ltd's trade receivables at 31 December should be shown on the statement of financial position at £34,000 and no amount charged to the statement of profit or loss for bad debts Wadsworth Ltd's trade receivables at 31 December should be shown on the statement of financial position at £34,000 and £4,000 charged to the statement of profit or loss as a bad debt Wadsworth Ltd's trade receivables at 31 December should be shown on the statement of financial position at £38,000 and no amount charged to the statement of profit or loss for bad debts Wadsworth Ltd's trade receivables at 31 December should be shown on the statement of financial position at £38,000 and £4,000 charged to the statement of profit or loss as a bad debt
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter6: Losses And Loss Limitations
Section: Chapter Questions
Problem 1BD
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