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Question - Allowance for Doubtful DebtsHotel California Ltd Trial Balance at 30 September 20X7 included:
Debit $ Credit $
Receivables ledger control account 90,350
Allowance for doubtful debts brought forward 2,490
The following information is also available:
1) No entries have been made in respect of cash of $1,320 received from Marylyn Ltd whose balance had been written off last year, and
2) At 30 September 20X7 an irrecoverable balance of $1,950 is to be written off and the receivable allowance is to be adjusted to 1·5% of the remaining balance
Required - Calculate the figure that will be reported in the statement of financial position at 30 September 20X7 for receivables.
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