O-LevelAccountingAccounting procedures7707/13 · Oct/Nov 2020 · Q161 Mark

The balances in the books of Jason on 1 July 2019 included the following. $ trade receivables 64200 provision for doubtful debts 1284 Trade receivables at 30 June 2020 were $58500, of which $500 should be written off as irrecoverable. Jason wants to maintain his provision for doubtful debts at 2% of trade receivables. What was the change in the provision for doubtful debts at 30 June 2020?

A$114 decrease

B$124 decrease

C$376 increase

D$386 increase

✓ Correct answer

B: $124 decrease

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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2020 Paper 1 Variant 3, question 16.

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