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QLDAccountingQuick questions
Unit 3: Managing resources for a trading GST business
Quick questions on Accounts receivable, bad and doubtful debts in QCE Accounting Unit 3
1short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What is adjusting an existing allowance?Show answer
In later periods the allowance already has a balance, so only the movement to reach the new required balance is recorded. If the allowance currently holds 1,000, increase it by 300, credit Allowance $300). If the required balance were lower than the current balance, the allowance is reduced and the excess credited back, reducing the expense.
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