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Answers to questions

Chapter 13

Example 1

X sold goods to Y on credit on 1 January 20X1 valued at $350. On 30
November 20X1, X was advised that Y was unable to pay the debt.

Required:

Account for the irrecoverable debt in the accounting records of X.

Example 1: Solution
Dr $ Cr $
Irrecoverable
01-Jan Sales 350 30-Nov debt 350

Irrecoverable debt expense
Dr $ Cr $
Sales ledger
30-Nov control account 350

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