O-LevelAccountingAccounting procedures7707/12 · May/June 2013 · Q121 Mark

Bashir maintains a provision for doubtful debts of 3% of the trade receivables at the end of the year. On 31 December 2011 trade receivables amounted to $70000. On 31 December 2012 trade receivables amounted to $73000. Which double entry should Bashir make on 31 December 2012?

Adebit: income statement $90, credit: provision for doubtful debts account $90

Bdebit: income statement $2100, credit: provision for doubtful debts account $2100

Cdebit: provision for doubtful debts account $90, credit: income statement $90

Ddebit: provision for doubtful debts account $2100, credit: income statement $2100

✓ Correct answer

A: debit: income statement $90, credit: provision for doubtful debts account $90

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 2, question 12.

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