A business has a draft profit for the year of $182 750.
The following adjustments have not yet been made.
1 a decrease of $2800 in the provision for doubtful debts
2 a prepayment of rent by the tenant of $3900 at the year-end
What is the actual profit for the year?
A trial balance showed a provision for doubtful debts as $1350. Trade receivables were $50320
which included a debt of $500 which was irrecoverable.
Which entry was required in the provision for doubtful debts account if the closing balance was to be 5% of trade receivables?
A $1144 credit
B $1141 debit
C $1166 credit
D $1166 debit
The provision for doubtful debts at 1 January 2018 was $1580.
Trade receivables at 31 December 2018 were $44750. This included a debt of $12500, considered irrecoverable.
The provision for doubtful debts was to be maintained at a rate of 5%.
Which entry for doubtful debts was included in the income statement for the year ended 31 December 2018?
A $32.50 expense
B $32.50 income
C $657.50 expense
D $657.50 income
The draft financial statements of a business show a profit for the year of $64000 before taking
account of the following:
1 the reduction of the provision for doubtful debts by $300
2 the purchase of office stationery costing $2400 which has not been entered in the books; only one-sixth of this stationery was used by the year end.
What is the corrected profit for the year?