Accounting 9706 · AS & A Level · Preparation of financial statements

Preparation of financial statements — practice question

A trial balance reported a provision for doubtful debts of $1350. Trade receivables totalled $50320, including an irrecoverable debt of $500. Which entry was needed in the provision for doubtful debts account if the closing balance was to be 5% of trade receivables?

  • A$1141 credit
  • B$1141 debit
  • C$1166 credit
  • D$1166 debit

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