A-LevelAccountingBad Debts and Provision for Doubtful DebtsOct/Nov 2020Paper 1 Q111 Mark
Ali's trade receivables at 31 December 2019 were $26500. He knew that $400 of these were irrecoverable. He wished to maintain a provision for doubtful debts equal to 5% of the trade receivables. At 1 January 2019 the balance of the provision for doubtful debts was $1200. Which entry does Ali make in the provision for doubtful debts account at 31 December 2019?
A$105 credit
B$105 debit
C$125 credit
D$125 debit
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of bad debts and provision for doubtful 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...
🔒
Unlock the Examiner's Answer
Sign up for free to reveal the correct answer, the official mark scheme breakdown, and the examiner trap analysis for this question.
Sign Up Free to Unlock →Join thousands of Cambridge students already using Oracle Prep