O-LevelAccountingAccounting procedures7707/12 · Oct/Nov 2019 · Q141 Mark

At the end of her financial year Ling reduced the provision for doubtful debts by $500. Which journal entry records this?

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Aincome statement debit $500; provision for doubtful debts credit $500

Bprovision for doubtful debts debit $500; income statement credit $500

Cprovision for doubtful debts debit $500; trade receivables credit $500

Dtrade receivables debit $500; provision for doubtful debts credit $500

✓ Correct answer

B: provision for doubtful debts debit $500; income statement credit $500

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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2019 Paper 1 Variant 2, question 14.

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