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A receivable has been written off as irrecoverable. However the customer suddenly pays the written off amount after the balance sheet date. is the event: a) Adjusting, b) Non-adjusting?

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Question added by Frank Mwansa , ACCOUNTING LECTURER , FREELANCER
Date Posted: 2016/02/09
Hashmi Nissam
by Hashmi Nissam , Chartered Accountant , QD-SBG Contructions W.L.L

The written off receivable represents an event that was existing as on balance sheet date. Hence the same is an Adjusting Event and should be adjusted for in the Financial Statement to which the item of Receivable relates to

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