A Level Accounting (9706)•9706/12/O/N/21

Explanation
Ambiguous purchases ledger balance prevents exact working capital calculation
Steps:
- Identify initial working capital: trade receivables 600 minus bank overdraft 7,800.
- Set off reduces trade receivables and trade payables by S = min(600, S ≤ $600, so working capital unchanged by set off.
- Create provision for doubtful debts: 5% of adjusted receivables (10,000 - S).
- Final working capital = 10,000 - S) = 7,300 to $7,330 depending on S).
Not enough information.
Final answer: Not enough information.
Topic: Preparation of financial statements
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