Navinder's business supplies computer parts on credit to many customers.On average, Navinder has found that 0.7% by value of his trade receivables amounts will not be settled.Therefore, he makes a general allowance in his accounts each year of 0.7% of trade receivables at the year end. Navinder's trade receivables at his 31 December 20X5 and 20X6 year ends were:
Assuming that there are no other transactions relating to Navinder's bad and doubtful trade receivables in 20X6 what is the doubtful trade receivables expense in his statement of profit or loss for the year ended 31 December 20X8?
A)£2429.70
B)£5134.50
C)£275.10
D)£2704.80

Question

Navinder's business supplies computer parts on credit to many customers.On average, Navinder has found that 0.7% by value of his trade receivables amounts will not be settled.Therefore, he makes a general allowance in his accounts each year of 0.7% of trade receivables at the year end. Navinder's trade receivables at his 31 December 20X5 and 20X6 year ends were:
 Assuming that there are no other transactions relating to Navinder's bad and doubtful trade receivables in 20X6 what is the doubtful trade receivables expense in his statement of profit or loss for the year ended 31 December 20X8?
A)£2429.70 
B)£5134.50 
C)£275.10 
D)£2704.80

Quizplus · Accepted Answer

The Answer of Navinder's business supplies computer parts on credit to many customers.On average, Navinder has found that 0.7% by value of his trade receivables amounts will not be settled.Therefore, he makes a general allowance in his accounts each year of 0.7% of trade receivables at the year end. Navinder's trade receivables at his 31 December 20X5 and 20X6 year ends were:
 Assuming that there are no other transactions relating to Navinder's bad and doubtful trade receivables in 20X6 what is the doubtful trade receivables expense in his statement of profit or loss for the year ended 31 December 20X8?
A)£2429.70 
B)£5134.50 
C)£275.10 
D)£2704.80

Navinder's Business Supplies Computer Parts on Credit to Many Customers