O-LevelAccountingAccounting procedures7707/11 · May/June 2013 · Q141 Mark

Hani decided to make a provision for doubtful debts of 3% of his trade receivables. How is this recorded? | | debit | credit | |---|---|---| | A | income statement | provision for doubtful debts account | | B | provision for doubtful debts account | income statement | | C | provision for doubtful debts account | trade receivables account | | D | trade receivables account | provision for doubtful debts account |

This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.

Aincome statement provision for doubtful debts account

Bprovision for doubtful debts account income statement

Cprovision for doubtful debts account trade receivables account

Dtrade receivables account provision for doubtful debts account

✓ Correct answer

A: income statement provision for doubtful debts account

Oracle Prep sorts past-paper questions by topic, so you can drill Accounting procedures and see which topics are most likely to come up next.

Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2013 Paper 1 Variant 1, question 14.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content