Question

Sumit maintains a provision for doubtful debts at 5% of the trade receivables at the end of each financial year. On 1 January 2016 the trade receivables amounted to $3500 and the provision for doubtful debts was $175.

The income statement for the year ended 31 December 2016 was debited with $15 for the provision of doubtful debts.

How much did the trade receivables owe on 31 December 2016?

A. $3040
B. $3200
C. $3610
D. $3800

Answer 1

$3040ccffsrrrrsfffffyffhrrsrrs