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(Solved): The entity has trade receivables of \( E 5,000 \) and an allowance for irrecoverable debts account ...
The entity has trade receivables of \( E 5,000 \) and an allowance for irrecoverable debts account of E450. The entity wishes to increase its allowance to \( 10 \% \) of the trade receivables. The correct procedure would be to:
Expert Answer
Trade receivables = 5,000 Irrevocable debts = 45