Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the debtors control account had a debit balance of

The debtors control account had a debit balance of R50000 on 28 February 2023 ...

60.1K

Verified Solution

Question

Accounting

The debtors control account had a debit balance of R50000 on 28 February 2023
(the end of the financial year). The provision for bad debts account had a balance
of R3000 on 28 February 2022. If the provision for bad debts is calculated at 5% of
the trade debtors, which of the following statements is correct?
A. The current assels will decrease by R500.
B. An amount of R500 will be recorded as an expense in the statement of comprehensive
income.
C. The provision for bad debts account will reflect a balance of R500.
D. An amount of R500 will be recorded as an income in the statement of comprehensive income.
Clear my choice
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students