Recording Transactions: Receivables

Section A At 1 January 20X8, Trade Receivables were $85,000 and the Allowance for Receivables was $4,000. During the year, a debt of $3,000 was written off as irrecoverable. At 31 December 20X8, it was decided to adjust the allowance for receivables to 5% of the remaining trade receivables. What is the total charge to the statement of profit or loss for receivables expense for the year?

Section B - Case 2: Single Entity Accounts **Scenario: AquaHarvest Marine Farms** AquaHarvest prepares its financial statements for the year ended 30 September 20X6. The draft profit before adjustments is $120,000. Issue 1: A payment for marine insurance of $6,000 for the year ending 31 December 20X6 was recorded entirely as an expense in the P&L. Issue 2: Depreciation on harvesting equipment (Cost $80,000, Acc Dep $30,000) needs to be charged at 20% reducing balance. Issue 3: A customer went bankrupt owing $2,500. This needs to be written off. Issue 4: A suspense account has a $4,500 Credit balance because a cash receipt of $4,500 from a credit customer was only recorded in the cash book. Regarding Issue 3, what is the journal entry to write off the irrecoverable debt?