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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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. £3,240 O c. £4,920 O d. £1,680 1 2 ASSETS -3,000 (trade receivables) +3,000 (provision for doubtful debts) -1,320 (provision for doubtful debts) EXPENSES +1,320 (bad debt expense) (OP) EQUITY REVENUES LIABILITIES 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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