A-LevelAccountingPreparation of financial statements9706/12 · Feb/Mar 2017 · Q81 Mark

A trial balance showed a provision for doubtful debts as $1350. Trade receivables were $50320 which included a debt of $500 which was irrecoverable. Which entry was required in the provision for doubtful debts account if the closing balance was to be 5% of trade receivables?

A$1141 credit

B$1141 debit

C$1166 credit

D$1166 debit

✓ Correct answer

A: $1141 credit

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Topic: Preparation of financial statements, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Feb/Mar 2017 Paper 1 Variant 2, question 8.

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A trial balance showed a provision for doubtful debts as $1350. Trade receivables were $50320 which included a debt of $500 which was irrecoverable. Which entry was required in the provision for doubtful debts account if the closing balance was to be 5% of trade receivables?

✓ Correct answer

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