5. At 30 June 2014 a company's allowance for receivables was $39,000. At 30 June 2015 trade receivables totalled $517,000. It was decided to write off debts totalling $37,000 and to adjust the allowance for receivables to the equivalent of 5% of the trade receivables based on past events. What figure should appear in the income statement for the year ended 30 June 2015 for these items? (A) $61,000 (B) $22,000 (C) $24,000 (D) 23,850 6. In preparing a company's bank reconciliation statement at March 2015, the following items are causing the difference between the cash book and the bank statement balance: (1) Bank charges $380 (2) Error by $1,000 (cheque incorrectly debited to the account) (3) Lodgements not credited $4,580 (4) Outstanding cheques $1,475 (5) Direct debit $350 (6) Cheque paid in by company and dishonoured $400. 3 Which of these items will require an entry in the cash book? (A) 2.4 and 6 (B) 1, 5 and 6 (C) 3, 4 and 5 (D) 1, 2 and 3 (7) A debit balance of $300 in a cash account shows that (A) There was $300 cash in hand (B) Cash has been overspent by $300 (C) $300 was the total of cash paid out. (D) The total of cash received was less than $300. (8) A bank reconciliation statement is a statement (A) sent by the bank when the account is overdrawn (B) drawn up by the company to verify its cash book balance with the bank statement balance, (C) Drawn by the bank to verify the cash book (D) Sent by the bank when the company has made an error in the cash book