Receivables expense for limited liability company ( video below)

At 1 July 20X5 a limited liability company had an allowance for receivables of $20,750. During the year ended 30 June 20X6 debts totaling $36,500 were written off. At 30 June 20X6 a receivables allowance of $54,500 was required.

What figure should appear in the company’s statement of profit or loss for the year ended 30 June 20X6 for receivables expense?

Answer

Receivables expense = $36,500 + ($54,500 – $20,750) = $70,250

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