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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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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