A-LevelAccountingBad Debts and Provision for Doubtful DebtsOct/Nov 2009Paper 1 Q31 Mark
A business makes a provision for doubtful debts equal to 5% of its debtors. At 31 March 2008 the provision for doubtful debts was $850. At 31 March 2009 the debtors after the provision for doubtful debts were $17 100. How much is the increase in the provision for doubtful debts for the year ended 31 March 2009?
A$45
B$50
C$850
D$900
✓ Correct Answer
The correct answer is B. This question tests the candidate's understanding of bad debts and provision for doubtful 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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