DFS Dec 06

[joyride]

I've worked it out now!

[Devilishbird]

Hi

I think you might be looking at the wrong answer. The advertising is to be allocated to Distribution costs and your answer has used Administrative expenses.
I remember doing this practice paper and it is pretty straight forward.

The answer should be:

Dr Distribution costs
Cr Accruals

As it will be classed as a cost to be accrued as no invoice has been received before the ETB was prepared.
Hope that makes sense, if not let me know

[mowzer]

You're looking at the wrong answer, the fourth journal down is:

DR Distribution costs 57
CR Accruals 57

:001_smile::001_smile:

[sloshed]

Think you are getting a bit confused. The answer is

DR Distrubtion Costs 57
CR Accruals 57

The 79 relates to point 4 in your additional data

[mowzer]

Lol i think the stress is getting to everyone

[joyride]

lol see what state PEV has left me in!