CIMA Exam CIMAPRA17-BA3-1 Topic 1 Question 90 Discussion

Actual exam question for CIMA's CIMAPRA17-BA3-1 exam

Question #: 90
Topic #: 1

AB wrote off a $500 debt owed by CD last year During the current year CD has paid the $500 in full AB has debited the bank account with S500.

Where would the credit entry for this receipt be recorded?

AAllowance for receivables

BIrrecoverable debts expense

CSates ledger control account

DReceivables account of CD

Show Suggested Answer

Suggested Answer: B

by Vivan at Jun 22, 2024, 09:11 PM

Limited Time Offer

25%

Off

Get Premium CIMAPRA17-BA3-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Roy

5 months ago

D, all the way! 'Receivables account of CD' is the only choice that makes sense. Anything else and I'd be as lost as a accountant in a strip club.

upvoted 0 times

...

Destiny

5 months ago

I'm going with 'Sates ledger control account'. Sounds like the most legit option to me. But hey, who knows, maybe I'm just overthinking it.

upvoted 0 times

Eileen

3 months ago

Yeah, that seems like the most straightforward option.

upvoted 0 times

...

Nickolas

3 months ago

I agree, it makes sense to record it directly in CD's account.

upvoted 0 times

...

Donette

3 months ago

I think it should be recorded in the Receivables account of CD.

upvoted 0 times

...

Malika

4 months ago

I'm not sure, but I think it could also be recorded in the Sates ledger control account.

upvoted 0 times

...

Christoper

4 months ago

I agree, it makes sense to record it directly in the CD's account.

upvoted 0 times

...

Janine

4 months ago

I think it should be recorded in the Receivables account of CD.

upvoted 0 times

...

Brittani

5 months ago

I see your point, Sabina. But I still think it should be recorded in the Receivables account of CD, as it directly affects their account balance.

upvoted 0 times

...

Sabina

5 months ago

I disagree. I believe the credit entry should be recorded in the Sales ledger control account, as it relates to a payment made by CD.

upvoted 0 times

...

Jerry

5 months ago

I agree with Corazon. Since CD paid the $500 in full, it makes sense to record the credit entry in their Receivables account.

upvoted 0 times

...

Corazon

6 months ago

I think the credit entry should be recorded in the Receivables account of CD.

upvoted 0 times

...

Ettie

6 months ago

Aha! The answer is clearly 'Receivables account of CD'. I mean, it's a debt owed by CD that's been paid back. Simple as that.

upvoted 0 times

Shawna

5 months ago

Yes, I agree. Since CD paid back the debt, it makes sense to record it in their Receivables account.

upvoted 0 times

...

Kenny

5 months ago

I think it should be recorded in the Receivables account of CD.

upvoted 0 times

...

Helene

6 months ago

Well, this one's a toughie! I'm torn between 'Receivables account of CD' and 'Irrecoverable debts expense'. Gotta love these accounting curveballs, am I right?

upvoted 0 times

Margurite

5 months ago

I agree, this accounting question is definitely a tough one to crack!

upvoted 0 times

...

Noelia

5 months ago

I believe it should go to Irrecoverable debts expense.

upvoted 0 times

...

Lindsey

6 months ago

I think the credit entry would be recorded in the Receivables account of CD.

upvoted 0 times

...