[maljawhar]

Hi John,

But on 11 June R. Shah buys on credit £2,000 of goods from Sandy Hampton, and we are

talking here about Sandy not R. Shah. Is that account should be (Asset: account

receivables) instead of Purchases?
another question:

when you purchase goods on credit/ cash, is the account involve here is:

Assets a/c :Inventory purchases?

thanks for help, your lectures completely helpful.

Regards,
Mohammed

[maljawhar]

Hi John,

my apologies, enter bottom was pressed without notice and forgot to ask the question.

so, my question is about the following:

can you explain furthermore about this statement( The allowance for receivables is to be increased to 5% of trade receivables. The allowance for receivables is treated as an administrative expense.).

appreciate your help.

my apologies again, thanks,

Mohammed

[Author]

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