depreciation unit 5

meibaker

what's this sentence means?
2.5% provision for doubtful debts adjusted in line with change in the level of debtors at 31 dec 2006? thanks

sarahwilson

There will have been a 2.5% provison for doubtful debts as at the 1st January of that year, the figure for debtors is unlikely to be the same at the 31st of December as it was at the beginning of the year so all the question requires you do is work out the 2.5% provision using the debtors figure at the end of the year.

Hope that makes sense, it looks a bit longwinded!!

meibaker

thanks for you help. wish the question is as clear as yours. lol
best wishes