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Questions and Answers
What is the balance on the receivables ledger control account as at 31 March 20X8?
The company policy is to adjust the allowance for doubtful receivables to 5% of the total receivables.
False
What is the adjusted general allowance for doubtful receivables as at 31 March 20X8?
£549.36
The specific allowance for doubtful receivables as at 31 March 20X8 is ______.
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Match the following balances with their amounts (Debit or Credit):
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Study Notes
Receivables Ledger Control Account
- Balance as at 31 March 20X8: £27,468
Company Policy for Allowance for Doubtful Receivables
- Adjustment to 2% of total receivables
Allowance for Doubtful Receivables Account
- One general ledger account containing specific and general allowances
- Balance as at 1 April 20X7: £558.27
Specific Allowance for Doubtful Receivable
- Made for a specific doubtful receivable of £2,380 as at 31 March 20X8
- Previously, no specific allowance was made for this receivable
Journal Entries for Allowance for Doubtful Receivables
- To be made separately for specific and general allowances
- Entries to be made to two decimal places
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Description
Determine the allowance for doubtful receivables based on company policy and general ledger account information. Calculate the total allowance and adjust the ledger accordingly.
