relative to not having a provision for bad or doubtful debts, the existence of
such a provision
A. increases the total of current liabilities
B. Reduces the cost of sales
C. Reduces the total of current assets
D. None of the above
ANSWER; D
how is the answer D shouldn't the answer be C since existance of allowance would decrease receivable and hence total of current assets
Ask the Tutor ACCA FA
RECEIVABLE AND PAYABLE LEDGER
The answer is C.
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