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Can part (C) please be explained Tutorial QUESTION -MR CARROLL Mr Carroll is reconciling his receivables balances at 31st December 2017. The list of receivables
Can part (C) please be explained Tutorial QUESTION -MR CARROLL Mr Carroll is reconciling his receivables balances at 31st December 2017. The list of receivables balances at 31st December 2017 totalled 45,192. The following information is also available: Receivables balances at 1st January 2017 (56,140 Provision for doubtful debts at 1st January 2017 2,807 Transactions during 2017: Credit sales426,179 Cash received from customers Cash refund to customer Discounts allowed Bad debts written off Returns inwards 430,624 1,430* 2,705 360 4,385 . The doubtful debt provision is maintained at 5% of receivables. Upon investigation Mr Carroll discovered the following (1) Mr Scott's balance per the ledger of 679 was included in the listing as The list of balances does not agree with the control account balance. 796 (2) A credit note issued to Mrs Walker for 350 was treated correctly in the day book but entered as an invoice in her account (3) Sales of 650 were entered on the wrong side of the customer's account in the receivables ledger. Assume that the cash refund is a refund to a Debtor who paid Mr Carroll an invoice in error which should have been paid to Carroll Insurance. During 2016 a balance owed by Mr. Payne had been written off when he was declared bankrupt. On 3rd October 2017 a payment of 240 was received from the administrator and credited to the sundries account in the nominal ledger. Requirement (a) Prepare the receivables control account for the year ended 31st (b) Show the corrections that should be made to the list of receivables (c) Prepare the extracts from the statement of profit or loss for the year (d) Prepare the statement of financial position extracts for receivables at December 2017 balances at 31st December 2017 ended 31st December 2017 in respect of bad and doubtful debts 31st December 2017
Can part (C) please be explained
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