Receivables Ledger and Control Account

This topic has 2 replies, 2 voices, and was last updated 5 years ago by Ken Garrett.

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May 12, 2021 at 9:40 am #620385
maximus07
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In a question, Allowance to customer on goods damaged in transit, has been credited to RLCA. Can you tell sir why it is crediting?
May 12, 2021 at 8:14 pm #620444
maximus07
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??
May 13, 2021 at 12:34 pm #620490
Ken Garrett
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The allowance means that, for example, instead of charging $100 you have agreed to charge only $60. So, the debt has been reduced by $40 and this has to be reflected by crediting the customer’s account in the RL and also the RLCA.
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