Question 1

A wholesale distributor has a receivables control account with an opening debit balance of $45,000. During the month, credit sales were $120,000, cash received from credit customers was $95,000, irrecoverable debts written off were $3,000, and discounts allowed were $2,000. What is the closing balance on the receivables control account? (Enter numbers only)

Accepted Answer

Set up a T-account. Debit opening balance and credit sales. Credit cash received, irrecoverable debts, and discounts allowed. Calculate the closing balance.

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Forgetting to deduct discounts allowed or adding irrecoverable debts instead of deducting them.

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA FA — Financial Accounting Practice Exam 4

More questions from this exam