A-LevelAccountingIrrecoverable Debts and Allowance for Irrecoverable DebtsOct/Nov 2024Paper 1 Q151 Mark
The following information is available for a sole trader. allowance for irrecoverable debts at the start of the year $1400 total trade receivables at the end of the year $36 000 At the end of the year it was decided to write off $1000 as irrecoverable debts and maintain the allowance for irrecoverable debts at 3% of trade receivables. What is the entry in the allowance for irrecoverable debts account?
A$320 debit
B$320 credit
C$350 debit
D$350 credit
✓ Correct Answer
The correct answer is C: $350 debit
📋 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...
🎯 Mark Scheme Breakdown
Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.
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