Answer to Question #316238 in Accounting for Mark

Question

At 1 October 2015 a business had total outstanding debts of $8, 600. During the year to 30 September 2016 the following transaction took place.

(a) Credit sales amounted to $44, 000.

(b) Payments from various customers (accounts receivable) amounted to $49, 000.

(c) Two debts, for $180 and $420, were declared irrecoverable and the customers are no longer purchasing goods from the company. These are to be written off.

Required

Prepare the trade accounts receivable account and the irrecoverable debts account for the year.

Answer 1

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