At the end of the reporting period, an entity has a balance on trade accounts receivable of N$700 000 and a balance on the allowance for doubtful debts of N$70 000. On the face of the statement of financial position:
(Choose one correct option only)

Question

At the end of the reporting period, an entity has a balance on trade accounts receivable of N$700 000 and a balance on the allowance for doubtful debts of N$70 000. On the face of the statement of financial position: 
 (Choose one correct option only)

Answer

As off-setting is not permitted, the trade accounts receivable will be disclosed as N$700 000 and the allowance for doubtful debts will be disclosed as a negative N$70 000.

Answer

There is no disclosure as trade accounts receivable are only required to be disclosed in the notes to the financial statements.

Answer

The trade accounts receivable will be disclosed net of the allowance for doubtful debts at an amount of N$630 000.

Answer

The trade accounts receivable will be disclosed within current assets as N$700 000 and the allowance for doubtful debts will be disclosed within current liabilities as N$70 000.

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At the end of the reporting period, an entity has a balance on trade accounts re...

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