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which of the following items could appear on the credit side of a receivables ledger control account?
1 Cash received from customers
2 Irrecoverable debts written off
3 Increase in the allowance for receivables
4 Discounts allowed
5 Sales
6 Credits for goods returned by customers
7 Cash refunds to customersCould you please explain why the third item do not appear on the control account?
I’ve been thinking that if there is an increase in allowance, it would reduce the amount of receivables.The allowance for receivables is recorded in a separate account – it is not recorded in the receivables account.
This is explained in my free lectures on irrecoverable and doubtful debts.
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