An extract from the trial balance of Arch Traders plc showed the following: ...
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Accounting
An extract from the trial balance of Arch Traders plc showed the following:
|
| Dr | Cr |
| Trade accounts receivable | 300 000 |
|
| Allowance for doubtful debts |
| 30 000 |
|
|
|
|
On the face of the statement of financial position:
- The trade accounts receivable will be disclosed within current assets as 300 000 and the allowance for doubtful debts will be disclosed within current liabilities as 30 000.
- The trade accounts receivable will be disclosed net of the allowance for doubtful debts at an amount of 270 000.
- As off-setting is not permitted, the trade accounts receivable will be disclosed as 300 000 and the allowance for doubtful debts will be disclosed as a negative 30 000.
- There is no disclosure as trade accounts receivable are only required to be disclosed in the notes to the financial statements.
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