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

Irrecoverable debts and provision for doubtful debts — practice question

When her income statement had been completed, Emma identified the following errors. A debt of \$1500 ought to have been written off as irrecoverable. No adjustment had been recorded for rent prepaid by Emma of \$2800. The draft profit for the year was \$35000. What was the corrected profit for the year?

  • A\$30700
  • B\$33700
  • C\$36300
  • D\$39300

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