A Accounting

Receivables expense ( video below)

At 1 July 20X4 the receivables allowance of ABC Co was $4,500.

During the year ended 30 June 20X5 debts totaling $3,650 were written off. The receivables allowance required was to be $4,000 as at 30 June 20X5.

What amount should appear in ABC Co ‘s statement of profit or loss for receivables expense for the year ended 30 June 20X5?

Answer

$
Irrecoverable debts written off 3,650
Reduction in allowance (4,500-4,000) (500)
Receivables expense 3,150


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