Frieda's provision for the doubtful debts account for the year included a debit entry representing the change in the amount provided. The rate of provision for doubtful debts has not changed.
What might have happened during the year to make this entry necessary?
1 Credit control procedures had been improved.
2 Credit control procedures had been reduced.
3 Total trade receivables had decreased.
4 Total trade receivables had increased.

Q: What topic does this question test?

This question tests Provision for Doubtful Debts in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Q: Which exam paper is this question from?

This question appeared in the Cambridge A-Level Accounting Oct/Nov 2021 examination, Paper 1 Variant 2 (9706_w21_qp_12.pdf).

Question

Frieda's provision for the doubtful debts account for the year included a debit entry representing the change in the amount provided. The rate of provision for doubtful debts has not changed.
What might have happened during the year to make this entry necessary?
1 Credit control procedures had been improved.
2 Credit control procedures had been reduced.
3 Total trade receivables had decreased.
4 Total trade receivables had increased.

Oracle Prep · Accepted Answer

The correct answer is A: 1 and 3.

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