Accounting 9706 · AS & A Level · Reconciliation and verification

Reconciliation and verification — practice question

A trader has worked out a provisional loss for the year of $320. Nevertheless, the adjustments below still need to be carried out. 1. Irrecoverable debts of $930 were recovered. 2. The allowance for irrecoverable debts had been $520. The needed allowance is 5% of trade receivables. Trade receivables amounted to $9600. What is the adjusted profit or loss for the year?

  • Aloss of $1210
  • Bloss of $1730
  • Cprofit of $130
  • Dprofit of $650

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