Hi, Sir John, l would want submit this question.
Jessica trial balance at September 2000 included.
Receivables ledger control account 90350. Allowance for receivables 2490. The following information is also available.
No entry have been made in respect of cash 1320 received from Jeffrey whose balance had been written off last year
b) at 30 september 2000 irrecoverable debts 1950 written off and the receivables is adjusted to1.5 of the remaining balance.
What figure will be reported in sofp at 30 september 2000 for receivables?
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Receivables
5y ago#1Why are you attempting a question for which you do not have the answer? You should be using a Revision Kit from one of the ACCA Approved Publishers - they have answers and explanations!
The cash received from Jeffrey does not affect the figure to be reported in the SOFP.
The irrecoverable debts of 1,950 will reduce the balance on the receivables ledger control account.
The rest of what you have typed after (b) makes no sense. I assume that you mean that the allowance for receivables is adjusted. If the question really says that it is adjusted to 1.5 of the remaining balance, then it can only mean that the allowance is changed to 1.5 x 2,490.
I suggest that you watch my free lectures on irrecoverable and doubtful debts where all this is explained.
Thank you so much, Sir for explanation.
5y ago#3You are welcome :-)
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