Accounting 0452 · IGCSE · Irrecoverable debts and provision for doubtful debts

Irrecoverable debts and provision for doubtful debts — practice question

As at $1$ April $2020$, Ahmed’s provision for doubtful debts was $\$290$. On $31$ March $2021$, the journal entry below was posted: Provision for doubtful debts debit $\$25$, income statement credit $\$25$. What amount of provision for doubtful debts was deducted from trade receivables in Ahmed’s statement of financial position on $31$ March $2021$?

  • A$25
  • B$265
  • C$290
  • D$315

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