O-LevelAccountingAccounting procedures7707/11 · May/June 2012 · Q151 Mark

Which entries are required to create a provision for doubtful debts?

Adebit: bad debts account, credit: provision for doubtful debts account

Bdebit: provision for doubtful debts account, credit: bad debts account

Cdebit: income statement, credit: provision for doubtful debts account

Ddebit: provision for doubtful debts account, credit: income statement

✓ Correct answer

C: debit: income statement, credit: provision for doubtful debts account

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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2012 Paper 1 Variant 1, question 15.

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