10. Based on aging of the receivables, Sudipta Ltd. Determined that the NET valu

Question

10. Based on aging of the receivables, Sudipta Ltd. Determined that the NET value of its accounts receivables was $650,000 at 30 June 30 2017. Additional information is as follows: Allowance for doubtful debts at 1 July 2016 Bad debts written off on 18 May 2017 Bad debts recovered on 2 June 2017 Gross accounts receivable at 30 June 2017 $60,000 (Cr) $36,000 $4,000 $700,000 What is the bad and doubtful debt expense recognized for the year ended 30 June 2017? A. $22,000 B. $26,000 C. $50,000 D. $8,000

Explanation / Answer

Answer

Hence, the Ending allowance for doubtful debts balance on 30th June 2017 = 700000 – 650000 = $50,000

Beginning Allowances for doubtful debts balance [On 1 July 2016] =         $60,000 (credit)
(-) Bad debts written off finally                                                                                  $36,000
(+) Bad Debts recovered                                                                                                              $4,000
(-) Ending balance of Allowance for doubtful debts on 30th June 2017      $50,000
Bad & Doubtful expense recognised for the year =                                         $22,000

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.