O-LevelAccountingVerification of accounting records7707/11 · Oct/Nov 2017 · Q131 Mark

Ajay maintains a provision for doubtful debts of 3% of trade receivables. On 1 January 2016, the balance on the provision for doubtful debts account was $70. The trade receivables amounted to $3500 on 31 December 2016. Which entry did Ajay make on 31 December 2016?

Adebit bad debts account, credit provision for doubtful debts account

Bdebit income statement, credit provision for doubtful debts account

Cdebit provision for doubtful debts account, credit income statement

Ddebit provision for doubtful debts account, credit trade receivables account

✓ Correct answer

B: debit income statement, credit provision for doubtful debts account

Practise more questions on this topic

Oracle Prep sorts past-paper questions by topic, so you can drill Verification of accounting records and see which topics are most likely to come up next.

About this question

Topic: Verification of accounting records, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2017 Paper 1 Variant 1, question 13.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content

Ajay maintains a provision for doubtful debts of 3% of trade receivables. On 1 January 2016, the balance on the provision for doubtful debts account was $70. The trade receivables amounted to $3500 on 31 December 2016. Which entry did Ajay make on 31 December 2016?

✓ Correct answer

Practise more questions on this topic

About this question

Related Accounting questions