Accounting 9706 · AS & A Level · Reconciliation and verification

Reconciliation and verification — practice question

The following details were given by a business about its first year of trading. Credit sales $93730. Receipts from credit customers $76500. Irrecoverable debt written off $150. Contra entered between purchases ledger and sales ledger $80. At the close of the year, the net trade receivables shown in the statement of financial position amounted to $16660. What was the balance on the provision for doubtful debts account at the end of the year?

  • A$340
  • B$490
  • C$500
  • D$650

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