umarfarooq22
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Hi everyone,
I'm stuck on this 1 question for AS level Accounting. Can any kind soul enlighten me with the answer and explanation?
Btw I do know the answer but do not understand how that answer was reached.
Q. A business makes a provision for doubtful debts equal to 5 % of its debtors.
At 31 March 2003 net debtors were shown in the Balance Sheet as $17 100.
At 31 March 2004 the balance on its Sales Ledger Control account was $19 000. In the year
ended 31 March 2004 a bad debt of $800 had been written off.
How much should be debited in the Profit and Loss Account for the year ended 31 March 2004
for the provision for doubtful debts?
A $10 B $50 C $55 D $95
I'm stuck on this 1 question for AS level Accounting. Can any kind soul enlighten me with the answer and explanation?
Btw I do know the answer but do not understand how that answer was reached.
Q. A business makes a provision for doubtful debts equal to 5 % of its debtors.
At 31 March 2003 net debtors were shown in the Balance Sheet as $17 100.
At 31 March 2004 the balance on its Sales Ledger Control account was $19 000. In the year
ended 31 March 2004 a bad debt of $800 had been written off.
How much should be debited in the Profit and Loss Account for the year ended 31 March 2004
for the provision for doubtful debts?
A $10 B $50 C $55 D $95
