account 的douful debt 入帳!??

Question

問題是這樣的:

Debtors $59000
provision for doubtful debts as at 1/1/2006

Additional information:
Provision for doubtful debts was to be maintained at 4% on the remaining trade debtors balance.

如果我要入呢條數~~應該點入啊??

provision for doubtful debts as at 1/1/2006 $3300

Answer 1

Debtors $59000
provision for doubtful debts as at 1/1/2006 $3300

Additional information:
Provision for doubtful debts was to be maintained at 4% on the remaining trade debtors balance.

Balance of provision for doubtful debts in balance sheet as at 1/1/2006 should be
$59,000 * 4%
= $2,360

Since there was provision of $3,300 as at 1/1/06, the following entries should be made to reduce the provision to $2,360 (i.e. reduced by $3,300 - $2,360 = $940)

Dr. Provision for doubtful debts (Balance sheet items) $940
Cr. Provision for doubtful debts written back (Profit & loss account items) $940



Extra information:
In balance sheet, you can present the net trade debtors:
Accounts receivable $56,640.

But in the notes to have more disclosure, the total amounts and provision should be made separatelu
Trade debtor $59,000
Less provision for doubtful debts ($2,360)
Net trade debtors $56,640

Answer 2

其實，

如果你話debtor是59000
Provision for doubtful debts was to be maintained at 4% on the remaining trade debtors balance.
就會係
(59000*4%) 2360

不過，你話，去年 provision for doubtful debts as at 1/1/2006 $3300

今年就是decrease

點入數，你要入
profit &loss

other income內
decreases in provision for doubtful debts (3300-2360)940


如果是double entry 的話
Dr Provision for doubtful debts 940
Cr Profit /Loss (income statement )

因為provision今年減咗
會入返proifit入面



2007-03-18 17:38:35 補充：
Dr Provision for doubtful debts 940Cr Profit /Loss (income statement ) 940

Answer 3

Dr profit & loss account----provision for doubtful debt (59000*4%) 2360
Cr provision for doubtful debt----(59000*4%) 2360