[otikosi]

thank you tutor.

I studied this and previous books from your lectures and I will continue it.
But for practice I am looking through other books, also using BPP revision book. the last question is from that book.

thank you for everything.

p.s. hope they will not make such silly misleading questions tomorrow.

[otikosi]

Oh I understand, if it’s occurred during the year we must deduct during the and not in the end.

[otikosi]

At 1 January 20X4, Tartar Co had total receivables of $380,000. A specific allowance of $20,000 had
been made for a business customer, Drab. The general allowance for receivables was 2.5%. During the
year, Drab went out of business owing Tartar Co $28,000, none of which is expected to be recovered.
At 31 December 20X4, Tatar had total receivables of $420,000. There were no specific allowances but
the general allowance for receivables was increased to 3%.
What is the charge in the income statement for the year to 31 December for the allowance for
receivables and irrecoverable debts?
A $16,400
B $31,600
C $44,400
D $11,600

stated correct answer :
D
$
Specific allowance for receivables at 1 January 20,000
General allowance: 2.5% of (380,000 – 20,000) 9,000
29,000
General allowance at 31 December: 3% of
420,000
12,600
Reduction in allowance for receivables (16,400)
Irrecoverable debt written off 28,000
Combined expense in income statement 11,600

also I dont think it’s correct

[otikosi]

I found it in BPP F3 – 2013-2014 , end of chapter 12 Irrecovable debts and Allowances, round up quick quiz.

[otikosi]

From your point of view you are right, if the inventory is counted physically and accountant maybe counted it on 3 January 2014, and forget to omit the last receive in warehouse.

“Inventory costing $45,000, which was received into the warehouse on 2 January 20X4, was included in the financial statements at 31 December 20X3 in error” does not state exactly that closing inventory includes $45000 and or receiving does not mean purchase? if it received, it is purchased and if we assume that not correct step was taken once about closing inventory, why have not I assume the second step is not correct too, about calculating cost of sales figure?

[otikosi]

hello everyone

that exam was too difficult for me, I learned F2 from opentuition and all basic I could understood, I am an accountant in my country and it was not difficult for me, but in exam maybe my eglish was poor or that questions came from somewhere else… I think admin if you could provide with more same difficulty questions and more practice in it. I don’t care about theory bacause practice is everithing.

ADMIN (in spite of i have mantioned) THANKS A LOT FOR EVERYTHING, if god helps me with F2, I’ll try to study hard next notes.

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