The Allowance for Doubtful Debts Account Has a Balance at the Start

question 38

Multiple Choice

The allowance for doubtful debts account has a balance at the start of the year of $1000. At the end of the year debts of $990, including $90 GST, are to be written off and the allowance for doubtful debts is to be adjusted to 10% of the closing accounts receivable balance of $22 000 (including $2000 GST) . The amount for bad and doubtful debts appearing in the income statement for the year will be:

• A) $2000.
• B) $1900.
• C) $2100.
• D) $2200.

---

Definitions:

Reverse Modeling

A technique in systems biology used to create computational models that predict the behavior or structure of systems from data.

Postvention

A strategy or intervention applied after a suicide, focusing on helping the bereaved or affected individuals cope and reduce the risk of further suicides.

Parents Help

Refers to support, guidance, and resources provided to parents in order to aid with the upbringing, development, and challenges in their children's lives.

Symbolic Loss

According to Freudian theory, the loss of a valued object (for example, a loss of employment) that is unconsciously interpreted as the loss of a loved one. Also called imagined loss.