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Question - The allowance for doubtful debts account has a balance at the start of the year of $2000. At the end of the year debts of $880, including $80 GST, are to be written off and the allowance for doubtful debts is to be adjusted to 10% of the closing accounts receivable balance of $33 000 (including $3000 GST). Find the amount for bad and doubtful debts appearing in the statement of financial performance for the year?
a. $1200.
b. $3300.
c. $1800.
d. $3000.
Financial Statement Analysis and Preparation
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