ACCA

Receivables and Allowances

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ACCA FA — Financial Accounting Practice Exam 3

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Q15Hard2 marks·ACCA FA — Financial Accounting Practice Exam 3

At 1 January 20X8, TradeCorp had an allowance for receivables of $12,000. At 31 December 20X8, total trade receivables were $450,000. The directors wish to write off an irrecoverable debt of $10,000 and then adjust the allowance for receivables to 5% of the remaining trade receivables balance. What is the total charge to the statement of profit or loss for receivables expense for the year ended 31 December 20X8?

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