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

Irrecoverable debts and provision for doubtful debts — practice question

Once her income statement had been prepared, Emma found the following mistakes. A debt of $1500 ought to have been written off as irrecoverable. No adjustment had been recorded for Emma’s prepaid rent of $2800. The draft profit for the year came to $35. What was the corrected profit for the year?

  • A$30\,700
  • B$33\,700
  • C$36\,300
  • D$39\,300

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