Pre-Adjustment trial balance of ABC Ltd at year end: Debtors - TopicsExpress

Pre-Adjustment trial balance of ABC Ltd at year end: Debtors control 52000 Provision for bad debts 2000(cr) Adjustments: 1. Mr X owed ABC Ltd R5000. During the year, he was declared insolvent and his estate advised ABC Ltd that only 30 cents for every rand owed to ABC Ltd by Mr X will be settled. 2. Provision for bad debts must be adjusted to 5% of the book debts Required: Calculate the following amounts as they would appear on the financial statements of ABC Ltd: a) Bad debts b) Provision for bad debts adjustment( state whether it is an expense or income) c) Provision for bad debts Admin : Gerald

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