Gce Model Questions Vol1 2024 Financial Accounting Question 2
Practice objective / multiple choice question 2 from the 2024 Gce Model Questions Vol1 Financial Accounting examination.
The trial balance of Company Y shows the following items (all amounts in \(\text{₦}\)):\n\n- Trade receivables: 210,000\n- Credit sales for the year: 400,000\n- Bad‑debt write‑offs during the year: 20,000\n\nCompany policy requires a provision for doubtful debts equal to the greater of (i) 3% of credit sales or (ii) 5% of trade receivables after write‑offs. What amount should be shown as the provision for doubtful debts in the statement of financial position at year‑end?
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This is Gce Model Questions Vol1 2024 Financial Accounting Question 2. It is one of the objective questions from the 2024 Gce Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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