Accounting 9706 · AS & A Level · Reconciliation and verification

Reconciliation and verification — practice question

The information below has been given by a business. 31 December 2018: trade receivables $46200, provision for doubtful debts $1386 31 December 2019: trade receivables $48100, provision for doubtful debts $1924 Which statement has to be correct?

  • AThe rate of provision for doubtful debts has decreased.
  • BThe rate of provision for doubtful debts has increased.
  • CThe value of irrecoverable debts incurred has decreased.
  • DThe value of irrecoverable debts incurred has increased.

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