Find what is the required adjustment to the allowance

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Problem 1: In 2020 Norman Pty Ltd had net credit sales of $75 000. On 1 July 2019, the allowance for doubtful debts had a credit balance of $1800. During 2020, $3000 of uncollectable accounts receivable were written off. Ageing of accounts receivable revealed that the allowance should be 8% of the balance in receivables. If the accounts receivable balance at 30 June 2020 was $20 000, what is the required adjustment to the allowance for doubtful debts at 30 June 2020?

Reference no: EM132934429

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