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.
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The following balance relate to Putney
Receivable at 1 jan 2018 34500
Cash received from credit customers 247790
Contra with payables 1200
Discount received 15670
Cash received 24000
Irrecoverable debt 18600
Increase in allowance 12500
Receivables at 31 12 2018 45000What is the revenue fig reported by Putney in the year ended 31 dec2018
A 275 690
B 278090
C 320 690
D 302 090Doubts:
What is contra payables
I din see anything in textbook ie Kaplan
I did watch the opentuition lecture in YouTube
If irrecoverable debt is simply
Given should I assume that it is written offThis is a question on control accounts, which are covered in a later lecture.
There is no point in practicing full questions until have you have finished studying all of the topics.
Very many questions in the exam (and therefore in the kit also) are testing more than one topic in the same question.
There obviously is an irrecoverable debt and an allowance for receivables in this question (and it is testing that you understand them) but it is mainly a control accounts question (and would have been better if they had put it in that section).
However, again, because so many questions are testing you on more than one topic, the Kit is to be used when you are revising, when you have finished studying all of the different topics.
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