OpenTuition | ACCA | CIMA
Free ACCA and CIMA on line courses | Free ACCA, CIMA, FIA Notes, Lectures, Tests and Forums
View all CIMA BA3 lectures | Download BA3 notes
Spread the word
If you have benefited from our materials, please spread the word so more students can benefit.
To help us keep materials up to do and add new content you can also donate
February 1, 2018 at 8:40 pm
Hi John- Why when writing off Irrecoverable debts do we write off the sale value (expected Revenue) of the debt and not the Cost of sale value? Surely companies would rather write off the cost of sale value of the services they initially sold in order to minimise the expense they write off to the P&L?
February 1, 2018 at 8:46 pm
Ignore me- they would have already recognised the cost of sale of the services/good sold in the P&L when they initially accrued the revenue. So is the write off of the irrecoverable debt just removing the previously accrued revenue/ receivable by stating it as an expense cost in a later period?
John Moffat says
February 2, 2018 at 7:56 am
You must be logged in to post a comment.