O-LevelAccountingAccounting procedures7707/11 · May/June 2022 · Q201 Mark

Nula's financial year ends on 31 December. She maintains a provision for doubtful debts of 5% of trade receivables. On 1 January 2021, the provision amounted to $800. On 31 December 2021, trade receivables owed $13400, of which $600 was regarded as irrecoverable. How much was the provision for doubtful debts on 1 January 2022?

A$600

B$640

C$660

D$670

✓ Correct answer

B: $640

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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2022 Paper 1 Variant 1, question 20.

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