Quelpr
6 marksBad Debts and Provisions for Doubtful Debts

CSEC Principles of Accounts · January 2018 · Paper 2 · Question 3(c)

A company started business on 1 January 2015 and decided to maintain a provision for bad debts of 4% of its year-end accounts receivable. Accounts receivable: 31 December 2015: 72 000; 31 December 2016: 84 000; 31 December 2017: $80 000.

Prepare the company's Provision for Bad Debts Account for the three years, 2015–2017.

The mark scheme is shown once you've answered.

Practise this question

Other parts of this question

  1. 3(a)Prepare a trading account for the Sweet Serve Company for the period, showing clearly inventories, cost of goods sold and gross profit.[4 marks]
  2. 3(b)(i)Using the T-account format, prepare the Rent Revenue account for Sweet Serve for the year ending December 31 2017.[5 marks]
  3. 3(b)(ii)Using the T-account format, prepare the Insurance Expense account for Sweet Serve for the year ending December 31 2017.[5 marks]

More practice: the rest of this paper · more Bad Debts and Provisions for Doubtful Debts questions · all CSEC Principles of Accounts past papers