The trade receivables balance at the start of the year was 10,000. At the end of the year this had increased to 22,500. At the end of the year it came to the attention of the directors that B. Quiet a credit customer with a balance of 2,500 is bankrupt. It has always been the company policy to provide an allowance for irrecoverable debts of 10%. What is the balance of the trade receivables account at the end of the year?

Multiple Choice

• 18,000

• 17,750

• 18,750

• 20,000

  The sale of equipment costing 8,000, with accumulated depreciation of 6,700 and a sale price of 2,000, would result in a:

  Multiple Choice

• Gain of 2,000.

• Gain of 700.

• Loss of 700.

• Loss of 600.

  What is the balance brought down on the following T account on 1 July?

  	S. McKee (supplier)
  June 1	Cheque	230	June 10	Purchases	250
  June 14	Sales	180	June 15	Purchases	50
  June 15	Purchase returns	10

  Multiple Choice

• 120 credit

• 120 debit

• 60 debit

• None of the above