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O-LevelAccountingAccounting procedures7707/12 · Oct/Nov 2020 · Q181 Mark

Beena maintains a provision for doubtful debts of 3% of the trade receivables at the end of each financial year. On 1 September 2019 the provision for doubtful debts was $900. On 31 August 2020 the trade receivables amounted to $42 800. Which journal entry did Beena make on 31 August 2020? debit $ | credit $ --- | --- income statement 384 | provision for doubtful debts | 384 income statement 1284 | provision for doubtful debts | 1284 provision for doubtful debts 384 | income statement | 384 provision for doubtful debts 1284 | income statement | 1284

Aincome statement 384 | provision for doubtful debts 384
Bincome statement 1284 | provision for doubtful debts 1284
Cprovision for doubtful debts 384 | income statement 384
Dprovision for doubtful debts 1284 | income statement 1284

✓ Correct answer

A: income statement 384 | provision for doubtful debts 384

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About this question

Topic
Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source
O-Level Accounting, Oct/Nov 2020 Paper 1 Variant 2, question 18.

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