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Amounts owing by customers amounted to £650,000 at 31 December 2020. The  business sets the provision for doubtful debts at 2.5% of trade receivables. The  provision for doubtful debts at 31 December 2020 amounted to £19,340. The final adjustment relating to doubtful debts in the accounts for the year ended 31 December 2020 will be: a) Dr Doubtful debts charge 16,250 Cr Trade receivables 16,250 b) Dr Doubtful debts charge 3,090 Cr Doubtful debts provision 3,090 c) Dr Doubtful debts provision 3,090 Cr Doubtful debts charge 3,090 d) Dr Doubtful debts charge 16,250 Cr Doubtful debts provision 16,250

Amounts owing by customers amounted to £650,000 at 31 December 2020. The  business sets the provision for doubtful debts at 2.5% of trade receivables. The  provision for doubtful debts at 31 December 2020 amounted to £19,340. The final adjustment relating to doubtful debts in the accounts for the year ended 31 December 2020 will be: a) Dr Doubtful debts charge 16,250 Cr Trade receivables 16,250 b) Dr Doubtful debts charge 3,090 Cr Doubtful debts provision 3,090 c) Dr Doubtful debts provision 3,090 Cr Doubtful debts charge 3,090 d) Dr Doubtful debts charge 16,250 Cr Doubtful debts provision 16,250

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 6MC: Prior to adjustments, Barrett Companys account balances at December 31, 2019, for Accounts...
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Amounts owing by customers amounted to £650,000 at 31 December 2020. The 
business sets the provision for doubtful debts at 2.5% of trade receivables. The 
provision for doubtful debts at 31 December 2020 amounted to £19,340.
The final adjustment relating to doubtful debts in the accounts for the year ended 31
December 2020 will be:
a) Dr Doubtful debts charge 16,250 Cr Trade receivables 16,250
b) Dr Doubtful debts charge 3,090 Cr Doubtful debts provision 3,090
c) Dr Doubtful debts provision 3,090 Cr Doubtful debts charge 3,090
d) Dr Doubtful debts charge 16,250 Cr Doubtful debts provision 16,250

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