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

Preparation of financial statements — practice question

Deepak gave the following details. - allowance for irrecoverable debts: end of year 1 $\$600$, end of year 2 $\$800$ - rate of allowance: end of year 1 $3\%$, end of year 2 $5\%$ What was the difference in the total of trade receivables between the end of year 1 and the end of year 2?

  • A$\$4000$ decrease
  • B$\$4000$ increase
  • C$\$10\,000$ decrease
  • D$\$10\,000$ increase

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