1st year of Business

Gross Receivables balance as at 31st Dec 2015 is $20,000. Trade Receivables

Allowance for doubtful is 10% of the Gross Receivables Balance. 20000

20000

20000

2nd year of Busines

Gross Receivables balance as at 31st Dec 2016 is $25,000. Trade Receivables

Allowance for doubtful is 10% of the Gross Receivables Balance. 25000

25000

25000

3rd year of Busines

Gross Receivables balance as at 31st Dec 2017 is $12,000. Trade Receivables

Allowance for doubtful is 10% of the Gross Receivables Balance. 12000

12000

12000
 1st year of Business
Trade Receivables Allowance for Doubtful Debts Bad Debt Expense
2000 2000

0 0 2000 2000

2000 2000

2nd year of Business

Trade Receivables Allowance for Doubtful Debts Bad Debt Expense

2000 500
500

0 0 2500 500

2500 500

3rd year of Business

Trade Receivables Allowance for Doubtful Debts Bad Debt Expense

1300 2500

0 1300 2500 0

1200 -1300
Bad Debt Expense Profit & Loss Account Balanc
For the month of As
Dr Cr
Sales Assets:
Cost of Sales Trade Receivables
Gross Profit 0
0 Other expenses:
Bad debt expense 2000
Total Expenses 2000
Other income 0
Net Profit -2000 Total Assets

Bad Debt Expense Profit & Loss Account Balanc

For the month of As
Dr Cr
Sales Assets:
Cost of Sales Trade Receivables
Gross Profit 0
0 Other expenses:
Bad debt expense 500
Total Expenses 500
Other income 0
Net Profit -500 Total Assets

Bad Debt Expense Profit & Loss Account Balanc

1300 For the month of As
Dr Cr
Sales Assets:
Cost of Sales Trade Receivables
Gross Profit 0
1300 Other expenses:
Bad debt expense -1300
Total Expenses -1300
Other income 0
Net Profit 1300 Total Assets
 Balance Sheet
As at

$ Liabilities & Capital: $

18000 Total liabilities:

Capital:
Total Capital

18000 Total liabilities & Capital 0

Balance Sheet
As at

$ Liabilities & Capital: $

22500 Total liabilities:

Capital:
Total Capital

22500 Total liabilities & Capital 0

Balance Sheet
As at

$ Liabilities & Capital: $

10800 Total liabilities:

Capital:
Total Capital

10800 Total liabilities & Capital 0