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

Preparation of financial statements — practice question

Before these items were considered, the business had a draft profit of $64\,000$. The allowance for irrecoverable debts remained at $2\%$ of trade receivables. Trade receivables totalled $150\,000$ at the start of the period and $220\,000$ at the end of the period. At the end of the period, $4\,000$ was received from a trade receivable that had earlier been written off as irrecoverable. Calculate the revised profit for the period.

  • A$58\,600$
  • B$62\,600$
  • C$63\,600$
  • D$66\,600$

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI