0452/11 Accounting May Jun 2024 Online Test | Cambridge IGCSE MCQ

A company’s financial year ends on 31 March.
On 31 March 2021 trade receivables were$45 000. On 31 March 2022 trade receivables were $41 000. An irrecoverable debt of $1000 is yet to be written off at 31 March 2022.
The provision for doubtful debts is to be maintained at 5%.
What is the effect of the irrecoverable debt and the adjustment to the provision for doubtful debts on the profit…