Question

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March 16, 2018 at 5:43 am #442760
basitali242313
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Baker required allowance for receivables is 4000 which would make the allowance one third higher than the current allowance
What is the previous allowance ?

I need to know how to solve the fraction
March 16, 2018 at 8:40 am #442776
Ken Garrett
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That is not an F1 topic. It’s F3. However,

4000 must represent Old allowance + 1/3 Old allowance = 4/3 of old allowance

Therefore old allowance = 3/4 x 4000 = 3000

[Check: Old 3,000 + 1/3 x 3000 = 4,000]
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