Prepare the income statement extract for the three years

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Reference no: EM132772096

Question - On January 1, 2016 S&S Company had $7 500 balance in its Provision for Bad Debts Account. The company's policy is to provide 5% of debtors as bad debts provision. The company's year ended December 31.

The debtors for the following 3 years were as follows:

December 31, 2016 $180,000

December 31, 2017 $135,000

December 31, 2018 $145,000

Required -

a) Prepare the Provision for Bad Debts Account for the three years.

b) Prepare the Income Statement extract for the three years.

c) Prepare the Balance Sheet extract for the last two years.

Reference no: EM132772096

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