PRC-1 · Chapter 5 · Question 83 of 100
An aged receivables schedule shows: Less than 31 days (Rs. 54,200), 31-60 days (Rs. 32,500), Over 60 days (Rs. 12,080). Required allowance is Nil for <31 days, 5% for 31-60 days, and 49% for >60 days. What is the total closing allowance?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Rs. 7,544.2
Explanation
(32,500 x 5%) = 1,625. (12,080 x 49%) = 5,919.2. Total = 1,625 + 5,919.2 = Rs. 7,544.2.
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