A-LevelAccountingPreparation of financial statements9706/12 · Oct/Nov 2014 · Q11 Mark

At the end of its financial year a business had trade receivables of $16000 and had doubtful debts of $640. The provision is to be maintained at 5%. Which amount is shown in the income statement?

A$160 credit

B$160 debit

C$800 credit

D$800 debit

✓ Correct answer

B: $160 debit

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Topic: Preparation of financial statements, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2014 Paper 1 Variant 2, question 1.

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