Dear Tutor, Can you please help me. I'm having a problem with a question in the bpp practice and revision kit. The Mock Exam 3 question 36 (c). For the calculation of irrecoverable debt expense the book take 8% directly from trade receivables. The book didn't subtract irrecoverable debt from trade receivables before applying the percentage to obtain allowance for receivables. I thought maybe this question is different or incorrect. I'm not sure
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Allowance for receivables
3y ago#1I do not have the kit and so I cannot see the question. However most likely it says that the irrecoverable debts were removed during the year. If that is the case the the balance on receivables at the end of the year is already after removing the irrecoverable debt and so we don't need to do it again :-)
It clearer now. Thank you Sir.
3y ago#3You are welcome :-)
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