Quick questions on Bad debts and provision for doubtful debts: prudence in action - AQA A-Level Accounting

2short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.

What is q1?

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State the double entry to write off a bad debt of

300

. [2 marks] Debit irrecoverable debts expense

300

; credit trade receivables

300

What is q2?

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Receivables are

40{,}000

and a

2.5\%

provision is needed. Calculate the provision. [2 marks]

2.5\% \times 40{,}000 = 1{,}000

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