Acca financial Accounting (FA) Study Text ac ca (FA)

PRACTICE QUESTIONS 

472

 

KAPLAN PUBLISHING

 

38  Gordon’s receivables owe a total of $80,000 at the year end. These 

include $900 of long-overdue debts that might still be recoverable, but for 

which Gordon has created an allowance for receivables. During the year, 

Gordon also wrote off an amount of $1,582. 

Which of the following statements best describes Gordon’s position 

regarding receivables as at the year end? 

A 

Trade receivables of $80,000, a specific allowance of $900 and a 

bad debt of $1,582 

B 

Trade receivables of $78,418, a specific allowance of $1,582 and a 

bad debt of $900 

C 

Trade receivables of $80,000 and a specific allowance of $2,482 

D 

Trade receivables of $78,418 and a specific allowance of $682