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?

Q: What is the correct answer to this A-Level Accounting question?

The correct answer is A: $2100 decrease.

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.

A$2100 decrease

B$2100 increase

C$2720 decrease

D$2720 increase

✓ Correct Answer

The correct answer is A: $2100 decrease

📋 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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About This A-Level Accounting Question

Topic

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

Source

This question appeared in the Cambridge A-Level Accounting Feb/Mar 2020 examination, Paper 1 Variant 2.

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