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Mylee’s draft accounts for the year ended 31 October 20X5 had a loss of $26,834.
On investigation Mylee discovered the following:
– a debt due of $750 should be written off as irrecoverable
– the allowance for receivables should be reduced from $2,350 to $1,980 the fixtures and fittings depreciation charge amounting to $870 had not yet been accounted for.
What was the adjusted result for the year?
$________ profit/loss* *delete which does not apply.
My calculation for final loss:
(26384)-750+370-870= -28085.
But in the answer provided, decrease in allowance has not been included. If it should not be included, could you explain the reason, please?For the question as you have typed it, the answer is indeed a loss of 28084.
I don’t know where you found the question, but it seems from what you have written as though they have made an error in the typing somewhere.
Thank you so much. The question is from Kaplan study text: practice question, number 79.
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