Accounting for Doubtful Receivables

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Questions and Answers

What is the balance on the receivables ledger control account as at 31 March 20X8?

£558.27
£27,468 (correct)
£544
£2,380

The company policy is to adjust the allowance for doubtful receivables to 5% of the total receivables.

False (B)

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 ______.

<p>£2,380</p> Signup and view all the answers

Match the following balances with their amounts (Debit or Credit):

<p>Allowance for doubtful receivables (general) = £549.36 Allowance for doubtful receivables (specific) = £2,380 Receivables ledger control account = £27,468</p> Signup and view all the answers

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.