ACCA FA Classroom - Syllabus D8. Receivables and Payables 8 / 10
a) Explain and identify examples of receivables and payables.
b) Identify the benefits and costs of offering credit facilities to customers.
c) Understand the purpose of an aged receivables analysis.
d) Understand the purpose of credit limits.
e) Prepare the bookkeeping entries to write off an irrecoverable debt.
f) Record an irrecoverable debt recovered.
g) Identify the impact of irrecoverable debts on the statement of profit or loss and on the statement of financial position.
h) Prepare the bookkeeping entries to create and adjust an allowance for receivables.
i) Illustrate how to include movements in the allowance for receivables in the statement of profit or loss and how the closing balance of the allowance should appear in the statement of financial position.
j) Account for contras between trade receivables and payables.
k) Prepare, reconcile and understand the purpose of supplier statements.
l) Classify items as current or non-current liabilities in the statement of financial position.