At 1st July 2017 a company's allowance for receivable was $48,000. At 30 June 2018, trade...

At 1st July 2017 a company's allowance for receivable was $48,000.

At 30 June 2018, trade receivable amounted to $838,000. It was decided to write off $72,000 of these debts and adjust the allowance for receivables to $60,000.

What are the final amount of Receivable net of allowance for inclusion in the company's Statement of Financial position at 30 June 2018?

Expert Solution

Allowance for Receivable on 1"July,2017 Trade Receivable on 30" June,2018 Company decided to write off as bad debts

A djust the Allowance forreceivables to $60,000

Fi nalamount of Receivable netof allowance at 30 June 2018

Final Amount of Account Receivabl e net of Allowance at 30 June 2018

Trade Receivable on 30 June,2018	=	$838,000
Less :Balance of Allowance for Receivables on 30 June,2018		36,000
Less :Bad Debts Written Off		72,000

Account Receivable net of Allowance

Allowance for Receivable on 1"July,2017 Trade Receivable on 30" June,2018 Company decided to write off as bad debts

ekkarill92 answered 2 years ago

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