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Thank you, I’m trying to use both the Study Text and the OpenTuition Lectures because there are some things in the Text that aren’t included in the Lectures. For example there was a Revision Kit question asking to identify the cost graph that illustrated a quantity discount on raw materials. That type of graph wasn’t covered in the Opentuition notes.
But that sounds more like the definition of Secondary Data. I thought an External source of data was just data collected from sources outside of/external to the company like customers and suppliers. Option 3 mentioned a survey that I assume was done to people outside of the company.
In regards to (a) since Receivables is a debit item and Sales a credit item, won’t the totals be unbalanced if Sales is credited instead of Receivables?
I have watched the video on suspense accounts but not on Books of prime entries, will do that now thank you. I think i’m confused on how errors in the daybook affect the trial balance/suspense accounts
Another suspense question that confused me:
Sales returns of $460 have inadvertently been posted to the purchase returns, although the correct entry has been made to the accounts receivable control.
A suspense account needs to be set up for how much?
a. $460 debit
b. $460 credit
c. $920 debit
d. $920 creditI think the phrasing of this question confused me. I assumed from the question that 460 had been Debited to the Purchase Returns and Credited to the Receivable Control (by Double Entry) but wouldn’t that leave the trial balance unaffected meaning no suspense account? Why would ‘posted to the Purchase returns’ mean credited to purchase returns instead of debited?
