A-LevelAccountingIrrecoverable Debts and Allowance for Irrecoverable DebtsMay/June 2024Paper 1 Q121 Mark
The draft profit for a business was $64 000 before the following information was taken into account. • An allowance for irrecoverable debts was maintained at 2% of trade receivables. The total of trade receivables was $150 000 at the beginning of the period and $220 000 at the end of the period. • On the last day of the period $4000 was recovered from a trade receivable that had been written off as irrecoverable. What is the revised profit for the period?
A$58 600
B$62 600
C$63 600
D$66 600
✓ Correct Answer
The correct answer is D. This question tests the candidate's understanding of irrecoverable debts and allowance for 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...
🔒
Unlock the Examiner's Answer
Sign up for free to reveal the correct answer, the official mark scheme breakdown, and the examiner trap analysis for this question.
Sign Up Free to Unlock →Join thousands of Cambridge students already using Oracle Prep