A-LevelAccountingBad Debts and Provision for Doubtful DebtsOct/Nov 2015Paper 1 Q61 Mark
A trial balance at 30 June, before making end of year adjustments, showed the following. | | debit $ | credit $ | |---|---|---| | trade receivables | 35600 | – | | provision for doubtful debts | – | 1160 | At 30 June, it was decided to write off a bad debt of $1600 and to make a provision for doubtful debts equal to 2% of trade receivables. What was the total decrease in the profit for the year ended 30 June arising from the bad and doubtful debts?
A$680
B$1120
C$2080
D$2280
✓ 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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