Frieda’s provision for the doubtful debts account for the year included a debit entry representing the change in the amount provided. The rate of provision for doubtful debts has not changed.
What might have happened during the year to make this entry necessary?
1 Credit control procedures had been improved.
2 Credit control procedures had been reduced.
3 Total trade receivables had decreased.
4 Total trade receivables had increased.
1 and 3
2 )
1 and 4
3 )
2 and 3
4 )
2 and 4
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