O-LevelAccountingAccounting procedures7707/13 · Oct/Nov 2021 · Q151 Mark

Sally wished to increase the balance on the provision for doubtful debts account at the end of the financial year. How should this increase be recorded?

Adebit: income statement, credit: provision for doubtful debts account

Bdebit: irrecoverable debts account, credit: provision for doubtful debts account

Cdebit: provision for doubtful debts account, credit: income statement

Ddebit: provision for doubtful debts account, credit: irrecoverable debts account

✓ Correct answer

A: debit: income statement, credit: provision for doubtful debts account

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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2021 Paper 1 Variant 3, question 15.

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