Accounting Multiple Choice Question – 21 February 2023

A trial balance shows:

        Dr accounts receivable £28,000

                        Cr provision for doubtful debts £1,200

£2,100 of the outstanding invoices are irrecoverable and are to be written off.

The owner of the business wishes to make the provision for doubtful debts equal to 5 % of his outstanding customer invoices.

What is the amount debited to the income statement for the provision for doubtful debts?

Select ONE answer:

1. £95
2. £1,295
3. £1,400
4. £2,600

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct – £28,000 – £2,100 * 0.05 = £1,295 – £1,200 == > £95 increase
2. Not correct
3. Not correct
4. Not correct

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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor View all posts by stuart001uk2014