Wadsworth Ltd's trade receivables at 31 December were £38,000, including an amount of £4,000 owed by Clark Ltd. However, the company was notified that Clark Ltd is being liquidated and that none of the debt owing to Wadsworth Lld will be received. Which of the following statements is true? Select one answer. Wadsworth Ltd's trade receivables at 31 December should be shown on the statement of financial position at £34,000 and no amount charged to the statement of profit or loss for bad debts Wadsworth Ltd's trade receivables at 31 December should be shown on the statement of financial position at £34,000 and £4,000 charged to the statement of profit or loss as a bad debt Wadsworth Ltd's trade receivables at 31 December should be shown on the statement of financial position at £38,000 and no amount charged to the statement of profit or loss for bad debts Wadsworth Ltd's trade receivables at 31 December should be shown on the statement of financial position at £38,000 and £4,000 charged to the statement of profit or loss as a bad debt

Wadsworth Ltd's trade receivables at 31 December were £38,000, including an amount of £4,000 owed by Clark Ltd. However, the company was notified that Clark Ltd is being liquidated and that none of the debt owing to Wadsworth Lld will be received. Which of the following statements is true? Select one answer. Wadsworth Ltd's trade receivables at 31 December should be shown on the statement of financial position at £34,000 and no amount charged to the statement of profit or loss for bad debts Wadsworth Ltd's trade receivables at 31 December should be shown on the statement of financial position at £34,000 and £4,000 charged to the statement of profit or loss as a bad debt Wadsworth Ltd's trade receivables at 31 December should be shown on the statement of financial position at £38,000 and no amount charged to the statement of profit or loss for bad debts Wadsworth Ltd's trade receivables at 31 December should be shown on the statement of financial position at £38,000 and £4,000 charged to the statement of profit or loss as a bad debt

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 44P

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