A-LevelAccountingProvision for Doubtful Debts and Irrecoverable DebtsMay/June 2019Paper 1 Q71 Mark
The provision for doubtful debts at 1 January 2018 was $1580. Trade receivables at 31 December 2018 were $44750. This included a debt of $12500, considered irrecoverable. The provision for doubtful debts was to be maintained at a rate of 5%. Which entry for doubtful debts was included in the income statement for the year ended 31 December 2018?
A$32.50 expense
B$32.50 income
C$657.50 expense
D$657.50 income
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of provision for doubtful debts and irrecoverable debts within the Accountingsyllabus. The examiner's mark scheme requires...
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
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