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Chapter 13
Example 2
P sold goods to Q on credit valued at $500. Q did not pay and his debt was
written off in 20X0.
On 31 December 20X1, Q paid the debt in full.
Required:
Post the original sale on credit, the write off of the debt and then the
entries required to record the subsequent payment received.
Example 2: Solution
Sales ledger control account
Dr 20X0 $ Cr 20X0 $
20X1 20X1
Irrecoverable debt expense
Dr 20X0 $ Cr 20X0 $
20X1 20X1
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