Business, 18.03.2021 03:20 jasminechambers642
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A business maintains a provision for doubtful debts of 5% per annum. It has trade receivables
balances of $560 000 at the start and $468 000 at the end of the financial year,
Which statements are correct?
1 Customers' accounts have been credited with $4600.
2 $4600 is treated as income in the income statement.
3 $4600 is deducted from current assets in the statement of financial position,
A 1, 2 and 3 B 1 only C 2 only
D 2 and 3 only
Answers: 2
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A business maintains a provision for doubtful debts of 5% per annum. It has trade receivables
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