A Accounting

Receivables expense and allowance for receivable ( video below)

At the beginning of the year, the allowance for receivables was $1,000. At the year-end, the allowance required was $2,000. During the year $700 of debts were written off, which includes $200 previously included in the allowance for receivables.

What is the charge to statement of profit or loss for receivables expense for the year?

Answer

charge
$ $
Receivables allowance at year end 2,000
Receivables allowance at beginning of year 1,000
Increase in allowance 1,000
Irrecoverable debts written off 700
Total charge to statement of profit or loss 1,700


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