A new member of accounting staff prepared the Trade receivables control account as shown. Every amount stated on it, other than the closing debit balance, is correct. However, the amount stated as collection from customers includes an amount of £4,200 received from a debt that was written off as unrecoverable when financial statements were prepared in the previous year’s financial statements.

Required: 

A revised Trade receivables control account.

Transcribed Image Text:

Balance b/f Sales (on credit) Bad debt Discount allowed Offset by contra Balance c/d Balance b/d Sales ledger control account £ 34,850 49,200 400 260 2,000 540 87,250 55,000 Balance b/f Bank - receipts Bank - dishonoured Discount reversed Sales returns Balance c/d Balance b/d பய 720 29,550 1,425 75 480 55,000 87,250 540