Tag: bad debt provision

A trial balance at 30 June, before making end of year adjustments, showed:

• Debit – trade debtors £35,600
• Credit – provision for doubtful debts £1,160

At 30 June, it was decided to write off a bad debt of £1,600 and to make a provision for doubtful debts equal to 2 % of trade debtors.

What was the total expense in the profit and loss account for bad and doubtful debts for the year ended 30 June?

Select ONE answer:

1. £680
2. £1,120
3. £2,080
4. £2,280

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 2

1. Not correct
2. Correct – -> £1,600 – (£1,160 – £680)
3. Not correct
4. Not correct

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