Accounting 9706 · AS & A Level · Reconciliation and verification

Reconciliation and verification — practice question

A company has the following balances. Trade receivables at 31 December 2017: $125400 Provision for doubtful debts at 1 January 2017: $1800 In the year ended 31 December 2017, debts of $20500 were written off. The company makes a provision for doubtful debts at a rate of $5\% of trade receivables at each year end. What amount for doubtful debts expense was shown in the income statement for the year ended 31 December 2017?

  • A$3445
  • B$4470
  • C$5245
  • D$6270

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