[cenk555]

So sorry sir, i dont understand it that interest receivable is a balance sheet account and just have cr interest receivable account ,why does it reflect to the profit? Because there is no interest income.

[cenk555]

Thanks a lot sir!

An increase in an allowance for receivables of 8000 has been treated as a reduction in the allowance in the financial statements. Which of the following explains the resulting effects?

Correct answer: Net profit overstated by 16000 , receivables overstated by 16000.

Please explain this question to me.
Why is not 8000 but is 16000?

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