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