Edexcel IGCSEAccountingGeneral Applications1 Mark
A business had the following balances at the end of the financial year. Trade receivables $12 000 Allowance for doubtful debts $800 It was decided to increase the allowance for doubtful debts to $950. Which of the following is the entry to record this? A Debit Income Statement $150, Credit Allowance for doubtful debts $150 B Debit Income Statement $950, Credit Allowance for doubtful debts $950 C Debit Allowance for doubtful debts $150, Credit Income Statement $150 D Debit Allowance for doubtful debts $950, Credit Income Statement $950
ADebit Income Statement $150, Credit Allowance for doubtful debts $150
BDebit Income Statement $950, Credit Allowance for doubtful debts $950
CDebit Allowance for doubtful debts $150, Credit Income Statement $150
DDebit Allowance for doubtful debts $950, Credit Income Statement $950
✓ Correct answer
A: Debit Income Statement $150, Credit Allowance for doubtful debts $150
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