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

question 24

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

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Definitions:

Synaptic Gap

The tiny space between neurons where neurotransmitters are released, allowing communication between cells.

Diffusion

The process by which molecules move from an area of higher concentration to an area of lower concentration until equilibrium is reached.

Synaptic Vesicles

Membrane-bound structures within presynaptic neurons that contain neurotransmitters, which are released into the synaptic gap in response to a neuron's action potential.

Attractive Forces

Forces that cause particles or objects to come together, commonly found in physics and chemistry, such as gravitational or electromagnetic forces.