Bender Ltd Uses the Allowance Method of Accounting for Bad

question 52

Multiple Choice

Bender Ltd uses the allowance method of accounting for bad and doubtful debts.Their accounts show:
Allowance for doubtful debts 1 July 2015 $10 200
Allowance for doubtful debts 30 June 2016 14 200
Bad & doubtful debts expense for the year 8 000
Calculate the amount of bad debts actually written off during the year.

• A)$4000
• B)$11 000
• C)$8000
• D)$6200

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Definitions:

Securities Trading

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Modifications made to laws governing the sale, purchase, and offering of financial instruments like stocks and bonds.

Anti-Fraud Securities Act

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Securities Exchange Act

Legislation governing the secondary trading of securities (stocks, bonds, and debentures) in the United States, aiming to provide transparency and fairness.