A-LevelAccountingThe accounting cycle9706/12 · Oct/Nov 2009 · 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

B: $50

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Topic: The accounting cycle, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2009 Paper 1 Variant 2, question 3.

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