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

Irrecoverable debts and provision for doubtful debts — practice question

A provision for doubtful debts of 5% of trade receivables is kept. On 1 January 2024, the provision for doubtful debts account showed a credit balance of $240. By 31 December 2024, trade receivables totalled $5200. Of this, $200 was judged to be irrecoverable. Which entry was recorded in the provision for doubtful debts account on 31 December 2024?

  • Adebit $10
  • Bcredit $10
  • Cdebit $20
  • Dcredit $20

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