At 30 September 20X2 a company's allowance for receivables amounted to $38,000, which was five per cent of the receivables at that date.At 30 September 20X3 receivables totalled $868,500. It was decided to write off $28,500 of debts as irrecoverable and to keep the allowance for receivables at five per cent of receivables.What should be the charge in the statement of profit or loss for the year ended 30 September 20X3 for receivables expense? A: $42,000 B: $33,925 C: $70,500 D: $32,500

At 31 December 20X2 a company's receivables totalled £400,000 and an allowance for receivables of £50,000 had been brought forward from the year ended 31 December 20X1. It was decided to write off debts totalling £38,000 and to adjust the allowance for receivables to 10% of the receivables.What charge for receivables expense should appear in the company's statement of profit or loss for the year ended 31 December 20X2? A: £74,200 B: £51,800 C: £28,000 D: £24,200

The sales day book total has been undercast by $3,500. What adjustment needs to be made to reconcile the receivables control account to the receivables ledger? A: DR $3,500 to the receivables ledger B: CR $3,500 to the receivables control account C: CR $3,500 to the receivables ledger D: DR $3,500 to the receivables control account

A business must write off an irrecoverable debt of $3,000.What is the journal entry to record this in the nominal ledger? A: Debit Trade receivables $3 ,000; Credit Sales $3,000 B: Debit Sales $3,000; Credit Trade receivables $3 ,000 C: Debit Irrecoverable debt expense $3,000; Credit Trade receivables $3,000 D: Debit Trade receivables $3,000; Credit Sales $3,000

A business discovers that a customer has become bankrupt. The customer owes the business $2,360. If sales tax is 20%, what accounting entries are necessary? A: DR Irrecoverable debts: $2,360, CR Receivables: $2,360 B: DR Irrecoverable debts: $1,888, DR Sales tax: $472, CR Receivables: $2,360 C: DR Irrecoverable debts: $2,360, CR Sales tax: $393.33, CR Receivables: $1,966.67 D: DR Irrecoverable debts: $1,966.67, DR Sales tax: $393.33, CR Receivables: $2,360

To which of the following is the receivables ledger control account reconciled? A: Aged receivables analysis B: Payables ledger C: Receivables ledger D: Cash book

North Co has a receivables balance at 31 October 20X7 of $456,330. The accountant at North is preparing the financial statements for the year ended 31 October 20X7 and must account for the following. 1 A balance owed by South Co of $780 is deemed irrecoverable and must be written off. 2 The brought forward receivables allowance is $15,255. The allowance for receivables should be adjusted to the equivalent of 5% of the outstanding receivables balances. 3 A payment of $450 from East Co has been received on 30 October. The payment relates to a balance that had previously been written off as irrecoverable by North Co. What value for receivables should appear in the statement of financial position of North Co at 31 October 20X7?

A company has opening receivables at the start of March of $356,789. 5% of receivables will be written off as irrecoverable debts. Budgeted sales in the month are $875,234 and closing receivables are expected to be $379,365. How much cash is expected to be received from receivables? A: $852,658 B: $834,819 C: $897,810 D: $915,649

The auditor of P Co is planning the audit work on trade receivables.Which of the following procedures could not be performed by using computer-assisted audit techniques? A: Selection of a sample of receivables for confirmation B: Calculation of receivables days C: C Production of receivables' confirmation letters D: Evaluation of the adequacy of the allowance for irrecoverable receivables

Which of the following is NOT the purpose of a receivables control account? A: A receivables control account ensures that there are no errors in the personal ledger. B: A receivables control account help to locate errors in the trial balance. C: A receivables control account provides a check on the arithmetical accuracy of the personal ledger. D: Control accounts deter fraud.