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If the trial balance at Howell's year-end shows trade receivables of £19,900 and bad debts of £600 written off during the year, which of the following statements is true? Select one: O a. The statement of profit or loss should include a bad debt expense of £600 and trade receivables of £19,300 should be included on the statement of financial position o b. The statement of profit or loss should include a bad debt expense of £600 and trade receivables of £19,900 should be included on the statement of financial position o c. The statement of profit or loss should include no bad debt expense and trade receivables of £19,900 should be included on the statement of financial position o d. The statement of profit or loss should include no bad debt expense and trade receivables of £19,300 should be included on the statement of financial position

If the trial balance at Howell's year-end shows trade receivables of £19,900 and bad debts of £600 written off during the year, which of the following statements is true? Select one: O a. The statement of profit or loss should include a bad debt expense of £600 and trade receivables of £19,300 should be included on the statement of financial position o b. The statement of profit or loss should include a bad debt expense of £600 and trade receivables of £19,900 should be included on the statement of financial position o c. The statement of profit or loss should include no bad debt expense and trade receivables of £19,900 should be included on the statement of financial position o d. The statement of profit or loss should include no bad debt expense and trade receivables of £19,300 should be included on the statement of financial position

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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If the trial balance at Howell's year-end shows trade receivables of £19,900 and bad debts of £600 written off during the year, which of the following statements is true? Select one: O a. The statement of profit or loss should include a bad debt expense of £600 and trade receivables of £19,300 should be included on the statement of financial position o b. The statement of profit or loss should include a bad debt expense of £600 and trade receivables of £19,900 should be included on the statement of financial position O c. The statement of profit or loss should include no bad debt expense and trade receivables of £19,900 should be included on the statement of financial position o d. The statement of profit or loss should include no bad debt expense and trade receivables of £19,300 should be included on the statement of financial position
Transcribed Image Text:If the trial balance at Howell's year-end shows trade receivables of £19,900 and bad debts of £600 written off during the year, which of the following statements is true? Select one: O a. The statement of profit or loss should include a bad debt expense of £600 and trade receivables of £19,300 should be included on the statement of financial position o b. The statement of profit or loss should include a bad debt expense of £600 and trade receivables of £19,900 should be included on the statement of financial position O c. The statement of profit or loss should include no bad debt expense and trade receivables of £19,900 should be included on the statement of financial position o d. The statement of profit or loss should include no bad debt expense and trade receivables of £19,300 should be included on the statement of financial position
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