Neco 2024 Financial Accounting Question 11
Practice objective / multiple choice question 11 from the 2024 Neco Financial Accounting examination.
The Trade Receivables Control Account had an opening debit balance of ₠120,000. During the month the following transactions were recorded: credit sales of ₠250,000; cash receipts from debtors of ₠180,000; sales returns (credit) of ₠15,000; discount allowed on early payment of ₠5,000. At month‑end the aged analysis shows that \(5\%\) of the closing receivables are overdue more than 90 days. The company provides a provision for doubtful debts equal to \(5\%\) of the amount overdue more than 90 days. Determine the amount of the provision for doubtful debts.
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About This Question
This is Neco 2024 Financial Accounting Question 11. It is one of the objective questions from the 2024 Neco Financial Accounting examination.
Difficulty level: Medium .
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