Irrecoverable Debts Allowances Mark FieldingPritchard mefielding com 1

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Irrecoverable Debts & Allowances Mark Fielding-Pritchard mefielding. com 1

Irrecoverable Debts & Allowances Mark Fielding-Pritchard mefielding. com 1

Bad Debts Irrecoverable Provision (prudence concept) Subsequent receipt mefielding. com 2

Bad Debts Irrecoverable Provision (prudence concept) Subsequent receipt mefielding. com 2

Irrecoverable Bad Debts 1. 1 P 215 Dr Cr On sale Receivables 300 Sales

Irrecoverable Bad Debts 1. 1 P 215 Dr Cr On sale Receivables 300 Sales On w/o Bad Debt Expense Receivables 300 300 Note 1. 2 A dishonoured cheque is not automatically a w/o mefielding. com 3

Bad Debts Provision Year 1 Co has no opening bad debt provision. Closing receivables

Bad Debts Provision Year 1 Co has no opening bad debt provision. Closing receivables are $50000. Provision required $5000 Dr On creation of provision Bad Debt Expense Cr 5000 Bad Debt Provision 5000 Presentation in Balance Sheet Current Assets mefielding. com Receivables 50000 Provision (5000) Reported 45000 4

Bad Debts Provision Year 2 Co has opening bad debt provision of $5000. Closing

Bad Debts Provision Year 2 Co has opening bad debt provision of $5000. Closing receivables are $75000. Provision required $7500 Dr On increas of provision Bad Debt Expense Cr 2500 Bad Debt Provision 2500 Presentation in Balance Sheet Current Assets mefielding. com Receivables 75000 Provision (7500) Reported 67500 5

Interactive Question 3. 1 P 220 Receivables Bal b/f 8600 Sales 44000 Cash (49000)

Interactive Question 3. 1 P 220 Receivables Bal b/f 8600 Sales 44000 Cash (49000) W/offs (600) Bal c/f 3000 mefielding. com 6

Irrecoverable Bad Debts P 222 Dr Cr On creation of provision Bad Debt Expense

Irrecoverable Bad Debts P 222 Dr Cr On creation of provision Bad Debt Expense 3000 Bad Debt Provision 3000 On Payment Cash 2000 Receivables 2000 Bad Debt Provision 2000 Bad Debt Expense 2000 Bad Debt Provision 1000 Receivables 1000 On w/o mefielding. com 7

Irrecoverable Bad Debts P 222 If w/off debt is subsequently paid Dr On receipt

Irrecoverable Bad Debts P 222 If w/off debt is subsequently paid Dr On receipt of cash Cr Receivables 1000 Bad Debt Expense 1000 Cash 1000 Receivables 1000 We restate the receivable to create an audit trail mefielding. com 8