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

Preparation of financial statements — practice question

A business sets up a provision for doubtful debts of $4\%$. On 31 March 2021, the trade receivables value after the provision had been deducted was $153600$. During the year ended 31 March 2022, the provision for doubtful debts rose by $960$. What was the value of trade receivables at 31 March 2022 after deducting the provision for doubtful debts?

  • A$161000
  • B$170496
  • C$176640
  • D$177600

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