A-LevelAccountingPreparation of financial statements9706/12 · Oct/Nov 2024 · 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
C: $350 debit
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