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A Level Accounting (9706)•9706/11/O/N/22
Question 13 from 9706/11/O/N/22

Explanation

Insufficient information to calculate total expenses Steps:

  • Identify cash expenses as $42,000.
  • Calculate required provision as 2% of 25,000tradereceivables=25,000 trade receivables = 25,000tradereceivables=500.
  • Note "depreciation for doubtful debts" $4,200 is ambiguous (possible opening provision, write-offs, or expense, but date and term conflict).
  • Recognize reducing balance method for provision is unclear without opening receivables/provision or write-offs; cannot determine adjustment to $500.

Not enough information.

Final answer: Not enough information.

Topic: Preparation of financial statements

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