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a/cs receivable

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › a/cs receivable

  • This topic has 1 reply, 2 voices, and was last updated 10 years ago by John Moffat.
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    Posts
  • October 30, 2014 at 3:25 pm #206856
    mp-open
    Member
    • Topics: 96
    • Replies: 167
    • ☆☆☆

    Hallo

    In the following example, shouldn’t we credit A/R with 2200 instead of 2000, why is it 2000:

    On February 1, 2012, Sanger Corp. lends cash and accepts a $2,000 note receivable that offers 10% interest and is due in six months. What would Sanger record on August 1, 2012, when the borrower pays Sanger the correct amount owed?

    Cash 2,100
    Interest Revenue 100/Notes Receivable 2,000
    Interest revenue = $2,000 x 10% x 6/12 = $100

    Thank you!

    October 30, 2014 at 4:32 pm #206868
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54696
    • ☆☆☆☆☆

    Again – this cannot be asked in Paper F3. It is not in the syllabus.

    You will have to stop asking these questions – sorry.

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