On 28 February 20.22 the balance of the receivables control account amounts to R650 000.

Question

On the same day the allowance for credit losses was calculated at 5% of outstanding receivables at R32 500.

On 28 February 20.23 the balance of the receivables control account amounts to R720 000.

The allowance for credit losses for 20.23 must be calculated at 5% of outstanding receivables.

To record this adjustment on 28 February 20.23 the bad debts/credit losses account in the general ledger must be:


Debited with R36 000


Another amount


Debited with R3 500


Credited with R3 500


Credited with R36 000

Answer 1

Debited with R36 000