ACCA F3 Past Exam Receivable

The following control account has been prepared by a trainee accountant:

Receivables ledger control account

$ $
Opening Balance 100,000 Cash received from credit customers 20,000
Credit Sales 600,000 Discount allowed to credit customers 8,000
Cash sales 10,000 Interest charged on overdue accounts 4,000
Contras against credit balances in payable ledger 70,000Bad debt written off 90,000
Allowance for receivable 80,000
Closing balance 578,000
Total 780,000Total 780,000

What should the closing balance be when all the errors made in preparing the receivables ledger control account have been corrected?

SUGGESTED SOLUTION

$ $
Opening Balance 100,000 Cash received from credit customers 20,000
Credit Sales 600,000 Discount allowed to credit customers 8,000
Interest charged on overdue accounts 4,000 Contras against credit balances in payable ledger 70,000
Bad debt written off 90,000
Allowance for receivable 80,000
Closing balance 436,000
Total 704,000Total 704,000

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