Question:At 1 July 20X3 a limited liability company had an allowance for receivables of $83,000.
During the year ended 30 June 20X4 debts totalling $146,000 were written off. At 30 June 20X4 it was decided that a receivables allowance of $218,000 was required.
What figure should appear in the company's statement of comprehensive income for the year ended 30 June 20X4 for receivables expense?
A. $364,000
B. $281,000
C. $11,000
D. $155,000
The correct answer is:$281,000
$146,000 + ($218,000 - $83,000) = $281,000