Use the Information Given Below to Answer the Following Questions

question 2

Multiple Choice

Use the information given below to answer the following questions:
Features Ltd maintains subsidiary ledgers for debtors and creditors. At 1 July 2011, debtors owed $10 000, creditors were owed $7300, and the balance in allowance for doubtful debts was $250. Transactions for the year ended 30 June 2012 were as follows:
$$\begin{array} { l r } \text { }&\$\\\text { Credit sales } & 120000 \\\text { Cash sales } & 300000 \\\text { Credit purchases } & 80000 \\\text { Cash purchases } & 200000 \\\text { Cash received from debtors } & 90000 \\\text { Cash paid to creditors } & 72000 \\\text { Discount received from creditors } & 1200 \\\text { Discount allowed to debtors } & 800 \\\text { Bad debts written off } & 150 \\\text { Increase in allowance for doubtful debts } & 300\end{array}$$
-What was the balance of the allowance for doubtful debts account at 30 June 2012?

• A) $400
• B) $300
• C) $200
• D) $450.

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