Accounting 9706 · AS & A Level · The accounting system

The accounting system — practice question

At 31 December 2018, Sofia has given the following details about her trade receivables.
(a)[2]

State the journal entry for writing off an irrecoverable debt.

(b)[4]

Calculate the provision for doubtful debts at 31 December 2018.

(c)[2]

Prepare the Provision for Doubtful Debts account for the year ended 31 December 2018. Dates must be shown.

(d)[2]

Explain one accounting concept used when a provision for doubtful debts is made.

(e)[5]

Describe the effect this change will have on Sofia's profit. Include relevant calculations in your response.

Worked solution & mark scheme

This 15-mark question has a full step-by-step worked solution and mark scheme. One marking point: Debit Irrecoverable Debts

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