Provision for bad debt 1500
Additional inf...
Use the following information to answer this question.
Provision for bad debt 1500
Additional information
1. Bad debt written off amount to 3000
2. Debtors balance as at the end of the year is 28,000
3. Provision for bad debts stand at 10%
How much is to be charged to profit and loss account as provision for bad debt?
N2,800
N1,000
N2,500
N3,000
Correct answer is B
Being that debtors balance minus bad debt written off multiplied by 10% and subtracted from the initial provision
28000 – 3000 = 25,000 X 10% = 2500
:. 2500 – 1500 = 1,000 (increase in provisions)
Use the following information to answer the given question \(\begin{array}{c|c}year &am...
In the preparation of manufacturing accounts, prime cost plus factory overheads equal to cost of ...
Subscriptions received in advance are ...
Use the following information to answer the given question \(\begin{array}{c|c} \text{Motor veh...
The assumption that a business has perpetual existence is recognized by ...
Given: I. Cash refunds II. Debit note issued III. Dishonored cheque IV...