Moya has trade receivables at 31 July 2019 of £380,000 after deducting a known irrecoverable debt of £9,500 and making a 5% allowance for receivables. What is the total value of Moya's trade receivables before she made the 5% allowance for receivables and before she deducted the known irrecoverable debt?

Question

Quizplus · Accepted Answer

To find the total value before the allowance and irrecoverable debt, first add back the 5% allowance to £380,000, which gives £400,000. Then add back the irrecoverable debt of £9,500, resulting in £409,500.

Moya Has Trade Receivables at 31 July 2019 of £380,000