At 1 October 2015 a business had total outstanding debts of K8,600,000. During the year to 30th September 2016 the following transaction took place. Credit sales amounted to K44,000,000. Payments from various customers (accounts receivable) amounted to K49,000,000. Two debts, for K180,000 and K420,000, 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 and the irrecoverable debts account for the year

At 1 October 2015 a business had total outstanding debts of K8,600,000. During the year to 30th September 2016 the following transaction took place. Credit sales amounted to K44,000,000. Payments from various customers (accounts receivable) amounted to K49,000,000. Two debts, for K180,000 and K420,000, 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 and the irrecoverable debts account for the year

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter7: Receivables And Investments

Section: Chapter Questions

Problem 7.3DC

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