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

Preparation of financial statements — practice question

At the beginning of the year, the provision for doubtful debts stood at $19600. Over the year, irrecoverable debts of $12300 were written off. By the end of the year, the provision for doubtful debts had fallen to $15500. What was the overall effect of these items on the profit for the year?

  • A$4100 decrease
  • B$4100 increase
  • C$8200 decrease
  • D$8200 increase

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