[Ziggystardust]

I see it now. Thanks again!

[Ziggystardust]

Thank you for replying John! Your lectures have been helpful in my preparation, and yes, I do watch them before moving on to the Kaplan text and kit.

But my confusion remains. Is bank interest receivable, not a SOFP item? If so, it shouldn’t affect the profit, right? OR if a SOFP item does affect the profit, then, say, if driver debited receivables instead (by error), is profit overstated in this case too?

[Ziggystardust]

Very well explained, I see it now. The final receivables balance reduction is basically a reflection of the recognition of contra earlier omitted in the receivables account.

And thank you so much for replying!

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