A-LevelAccountingProvision for Doubtful DebtsFeb/Mar 2020Paper 1 Q81 Mark
A business makes a provision for doubtful debts equal to 10% of trade receivables. The provision at 31 March 2018 was $8300. The trade receivables after the provision on 31 March 2019 were $55 800. What is the change in the provision over the year?
A$2100 decrease
B$2100 increase
C$2720 decrease
D$2720 increase
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of 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...
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