Dfs Past Paper Dec 2006

sebula

hello

i was doing the dfs past paer for dec 2006 and was just wondering why they put the provision for doubtful receivables in administraion expenses in task 1.1
in the model answer?

if someone could explain this to me?

many thanks

ste

confused!!

Hi, yes I was also confused by this myself!! I wouldnt have got that right if i had sat that exam :glare:!!

mehmet

I assume you know why the adjustment goes onto the income statement. The only reason I can think of is because it's not a distribution cost, so it has to be including in administration expenses as it's the only other line it can go on.