The closing trade receivables as at 31/10/2020 before bad debts written off were £165,000. The business continues to maintain the same provision for doubtful debts as last year of 2% on closing trade receivables after bad debts written off. The following two transactions have just been recorded in preparation for finalising the financial statements for the year ending 31/10/2020: No Select one: O a. £1,560 O b. £1,680 O c. £3,240 O d. £4,920 1 2 ASSETS -3,000 (trade receivables) +3,000 (provision for doubtful debts) -1,320 (provision for doubtful debts) EXPENSES = (OP) EQUITY REVENUES LIABILITIES +1,320 (bad debt expense) What was the "provision for doubtful debts" balance shown on the business's Statement of Financial Position as at 31/10/2019?
The closing trade receivables as at 31/10/2020 before bad debts written off were £165,000. The business continues to maintain the same provision for doubtful debts as last year of 2% on closing trade receivables after bad debts written off. The following two transactions have just been recorded in preparation for finalising the financial statements for the year ending 31/10/2020: No Select one: O a. £1,560 O b. £1,680 O c. £3,240 O d. £4,920 1 2 ASSETS -3,000 (trade receivables) +3,000 (provision for doubtful debts) -1,320 (provision for doubtful debts) EXPENSES = (OP) EQUITY REVENUES LIABILITIES +1,320 (bad debt expense) What was the "provision for doubtful debts" balance shown on the business's Statement of Financial Position as at 31/10/2019?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The closing trade receivables as at 31/10/2020 before bad debts written off were £165,000. The business
continues to maintain the same provision for doubtful debts as last year of 2% on closing trade receivables after
bad debts written off.
The following two transactions have just been recorded in preparation for finalising the financial statements for
the year ending 31/10/2020:
No
Select one:
O a.
1,560
O b. £1,680
O c. £3,240
O d. £4,920
1
2
ASSETS
-3,000
(trade
receivables)
+3,000
(provision for doubtful
debts)
-1,320
(provision for
doubtful debts)
EXPENSES = (OP) EQUITY REVENUES LIABILITIES
+1,320
(bad debt
expense)
11
=
What was the "provision for doubtful debts" balance shown on the business's Statement of Financial Position as
at 31/10/2019?
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