A-LevelAccountingProvision for Doubtful Debts / Bad DebtsOct/Nov 2018Paper 1 Q91 Mark
A company has the following balances. trade receivables at 31 December 2017 $125400 provision for doubtful debts at 1 January 2017 $1800 During the year ended 31 December 2017 debts of $20500 had been written off. The company provides for doubtful debts at a rate of 5% of trade receivables at each year end. Which expense for doubtful debts was included in the income statement for the year ended 31 December 2017?
A$3445
B$4470
C$5245
D$6270
✓ Correct Answer
The correct answer is B. This question tests the candidate's understanding of provision for doubtful debts / bad debts within the Accountingsyllabus. The examiner's mark scheme requires...
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
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