Financial accounting F3 acca Practice questions Financial accounting F3 acca Practice questions Financial accounting F3 acca Practice questions
Trang 1Irrecoverable Debts and Allowances
Prepared for Educational Purposes
August 14, 2025
Contents
2 Part 2: Answers with Detailed Explanations 10
1
Trang 21 Part 1: List of Questions
This section contains 50 multiple-choice questions based on irrecoverable debts and al-lowances for receivables, focusing on their recognition and impact on financial statements Numbers are aligned consistently from 1 to 50
1 At 30 June 2007, a company’s allowance for receivables was $93,600 At 30 June
2008, trade receivables totalled $1,240,800 It was decided to write off debts totalling
$88,800 and to adjust the allowance for receivables to the equivalent of 5 per cent of the trade receivables based on past events What figure should appear in the Statement
of Profit or Loss for the year ended 30 June 2008 for these items?
a $52,800
b $57,600
c $57,240
d $146,400
2 At 31 December 2013, a company had receivables of $140,000 and an allowance for receivables of $7,000 At 31 December 2014, they had receivables of $185,000 It was then decided to write off a debt of $4,000 as irrecoverable, and to have a general allowance of 5% of remaining debts What is the irrecoverable and doubtful debts expense in the Statement of Profit or Loss for the year ended 31 December 2014?
a $6,050
b $13,050
c $9,050
d $2,050
3 At 31 December 2005, the ledger of X Co included a $5,376 allowance for receivables During the year ended 31 December 2006, irrecoverable debts of $2,040 were written
off Receivables balances at 31 December 2006 totalled $173,760, and the company wished to carry forward a general allowance of 2% The total charge for irrecoverable debts and change in allowance for receivables in the 2006 Statement of Profit or Loss is:
a $98.40
b $3,904.80
c $5,515.20
d $139.20
4 Yv Co’s trial balance shows a receivables’ account balance of $50,000, this includes the following: (1) $2,500 from Mike who has gone into liquidation, (2) debts of $500 + $1,500 which are to be specially allowed for, (3) cash received from Ken of $1,800 which had previously been written off, (4) cash received from John of $2,900 which had previously been allowed for What is the revised receivables figure?
a $52,200
b $49,300
Trang 3c $45,500
d $50,200
5 At 1 July 2007, a company’s allowance for receivables was $48,000 At 30 June 2008, trade receivables amounted to $838,000 It was decided to write off $72,000 of these debts and adjust the allowance for receivables to $60,000 What are the final amounts for inclusion in the company’s Statement of Financial Position at 30 June 2008?
a Receivables: $766,000; Allowance: $60,000
b Receivables: $838,000; Allowance: $60,000
c Receivables: $766,000; Allowance: $48,000
d Receivables: $838,000; Allowance: $48,000
6 At 31 March 2023, a company had receivables of $200,000 and an allowance of $10,000
At 31 March 2024, receivables were $250,000, and $5,000 was written off The al-lowance is adjusted to 4% of receivables What is the expense in the Statement of Profit or Loss?
a $4,800
b $6,000
c $5,000
d $10,000
7 A companys receivables at 31 December 2023 are $300,000, with an allowance of
$15,000 During 2024, $10,000 is written off, and receivables at year-end are $320,000 The allowance is set to 3% What is the Statement of Profit or Loss expense?
a $4,300
b $9,600
c $14,600
d $5,600
8 At 30 June 2023, receivables are $150,000, with an allowance of $6,000 During the year, $3,000 is written off, and receivables at 30 June 2024 are $160,000 The allowance
is adjusted to 5% What is the expense in the Statement of Profit or Loss?
a $5,000
b $2,000
c $4,850
d $8,000
9 A companys trial balance shows receivables of $100,000, including $4,000 irrecoverable and $2,000 specifically allowed for Cash of $1,500, previously written off, is received What is the revised receivables figure?
a $95,500
b $97,500
c $94,000
Trang 4d $96,000
10 At 31 December 2023, a companys allowance for receivables was $8,000 At 31 Decem-ber 2024, receivables are $180,000, $6,000 is written off, and the allowance is adjusted
to 4% What is the Statement of Profit or Loss expense?
a $4,960
b $6,680
c $4,680
d $7,680
11 A company has receivables of $500,000 and an allowance of $25,000 at 31 March 2023 During 2024, $15,000 is written off, and receivables are $480,000 at year-end The allowance is set to 5% What is the expense in the Statement of Profit or Loss?
a $13,250
b $9,000
c $10,000
d $24,000
12 At 30 September 2023, receivables are $120,000, with an allowance of $4,800 During the year, $2,500 is written off, and receivables are $130,000 at 30 September 2024 The allowance is adjusted to 3% What is the expense in the Statement of Profit or Loss?
a $1,525
b $2,600
c $3,600
d $4,600
13 A companys receivables are $80,000, including $3,000 irrecoverable and $1,500 specif-ically allowed for Cash of $2,000, previously written off, is received What is the revised receivables figure?
a $79,000
b $78,500
c $77,000
d $76,500
14 At 31 January 2023, a companys allowance for receivables was $12,000 At 31 January
2024, receivables are $200,000, $8,000 is written off, and the allowance is adjusted to 6% What is the expense in the Statement of Profit or Loss?
a $7,520
b $9,520
c $8,520
d $10,520
Trang 515 A companys receivables at 30 June 2023 are $250,000, with an allowance of $10,000 During 2024, $5,000 is written off, and receivables are $260,000 at year-end The allowance is set to 4% What is the expense in the Statement of Profit or Loss?
a $5,200
b $4,400
c $6,400
d $7,400
16 A companys trial balance shows receivables of $60,000, including $2,000 irrecoverable and $1,000 specifically allowed for Cash of $1,500, previously allowed for, is received What is the revised receivables figure?
a $57,500
b $58,500
c $56,500
d $59,000
17 At 31 December 2023, a companys allowance for receivables was $9,000 At 31 Decem-ber 2024, receivables are $190,000, $7,000 is written off, and the allowance is adjusted
to 5% What is the expense in the Statement of Profit or Loss?
a $7,150
b $6,150
c $8,150
d $9,150
18 A company has receivables of $400,000 and an allowance of $20,000 at 31 March 2023 During 2024, $10,000 is written off, and receivables are $420,000 at year-end The allowance is set to 3% What is the expense in the Statement of Profit or Loss?
a $2,300
b $12,600
c $10,600
d $7,600
19 At 30 June 2023, receivables are $170,000, with an allowance of $8,500 During the year, $4,000 is written off, and receivables are $180,000 at 30 June 2024 The allowance
is adjusted to 4% What is the expense in the Statement of Profit or Loss?
a $2,540
b $4,700
c $5,700
d $6,700
20 A companys receivables are $90,000, including $5,000 irrecoverable and $2,000 specif-ically allowed for Cash of $3,000, previously written off, is received What is the revised receivables figure?
Trang 6a $88,000
b $85,000
c $86,000
d $87,000
21 At 31 December 2023, a companys allowance for receivables was $10,000 At 31 December 2024, receivables are $210,000, $9,000 is written off, and the allowance is adjusted to 5% What is the expense in the Statement of Profit or Loss?
a $8,050
b $9,600
c $10,600
d $11,600
22 A companys receivables at 30 September 2023 are $220,000, with an allowance of
$11,000 During 2024, $6,000 is written off, and receivables are $230,000 at year-end The allowance is set to 4% What is the expense in the Statement of Profit or Loss?
a $3,960
b $5,200
c $6,200
d $7,200
23 A companys trial balance shows receivables of $70,000, including $3,000 irrecoverable and $2,000 specifically allowed for Cash of $1,000, previously allowed for, is received What is the revised receivables figure?
a $66,000
b $67,000
c $65,000
d $68,000
24 At 31 March 2023, a companys allowance for receivables was $7,500 At 31 March
2024, receivables are $160,000, $5,000 is written off, and the allowance is adjusted to 3% What is the expense in the Statement of Profit or Loss?
a $2,150
b $3,250
c $4,250
d $5,250
25 A company has receivables of $300,000 and an allowance of $15,000 at 30 June 2023 During 2024, $8,000 is written off, and receivables are $310,000 at year-end The allowance is set to 5% What is the expense in the Statement of Profit or Loss?
a $8,100
b $7,500
Trang 7c $9,500
d $10,500
26 At 31 December 2023, receivables are $200,000, with an allowance of $10,000 During
2024, $7,000 is written off, and receivables are $210,000 at year-end The allowance
is adjusted to 4% What is the expense in the Statement of Profit or Loss?
a $5,120
b $6,400
c $7,400
d $8,400
27 A companys receivables are $100,000, including $4,000 irrecoverable and $3,000 specif-ically allowed for Cash of $2,000, previously written off, is received What is the revised receivables figure?
a $98,000
b $95,000
c $96,000
d $93,000
28 At 30 June 2023, a companys allowance for receivables was $6,000 At 30 June 2024, receivables are $150,000, $4,000 is written off, and the allowance is adjusted to 5% What is the expense in the Statement of Profit or Loss?
a $5,300
b $5,600
c $3,600
d $6,600
29 A companys receivables at 31 December 2023 are $180,000, with an allowance of
$9,000 During 2024, $5,000 is written off, and receivables are $190,000 at year-end The allowance is set to 3% What is the expense in the Statement of Profit or Loss?
a $1,550
b $4,700
c $5,700
d $6,700
30 A companys trial balance shows receivables of $80,000, including $2,500 irrecoverable and $1,500 specifically allowed for Cash of $1,000, previously allowed for, is received What is the revised receivables figure?
a $76,500
b $77,500
c $75,500
d $78,000
Trang 831 At 31 March 2023, a companys allowance for receivables was $8,000 At 31 March
2024, receivables are $170,000, $6,000 is written off, and the allowance is adjusted to 4% What is the expense in the Statement of Profit or Loss?
a $4,560
b $5,440
c $6,440
d $7,440
32 A company has receivables of $250,000 and an allowance of $12,500 at 30 September
2023 During 2024, $7,000 is written off, and receivables are $260,000 at year-end The allowance is set to 5% What is the expense in the Statement of Profit or Loss?
a $7,150
b $8,500
c $9,500
d $10,500
33 At 31 December 2023, receivables are $190,000, with an allowance of $9,500 During
2024, $5,000 is written off, and receivables are $200,000 at year-end The allowance
is adjusted to 4% What is the expense in the Statement of Profit or Loss?
a $3,300
b $4,500
c $5,500
d $6,500
34 A companys receivables are $110,000, including $5,000 irrecoverable and $2,000 specif-ically allowed for Cash of $3,000, previously written off, is received What is the revised receivables figure?
a $108,000
b $106,000
c $105,000
d $103,000
35 At 30 June 2023, a companys allowance for receivables was $7,000 At 30 June 2024, receivables are $160,000, $5,000 is written off, and the allowance is adjusted to 5% What is the expense in the Statement of Profit or Loss?
a $5,750
b $5,250
c $6,250
d $7,250
36 A companys receivables at 31 December 2023 are $210,000, with an allowance of
$10,500 During 2024, $6,000 is written off, and receivables are $220,000 at year-end The allowance is set to 4% What is the expense in the Statement of Profit or Loss?
Trang 9a $4,060
b $5,300
c $6,300
d $7,300
37 A companys trial balance shows receivables of $90,000, including $4,000 irrecoverable and $2,000 specifically allowed for Cash of $1,500, previously allowed for, is received What is the revised receivables figure?
a $84,500
b $86,500
c $85,500
d $87,000
38 At 31 March 2023, a companys allowance for receivables was $9,000 At 31 March
2024, receivables are $180,000, $7,000 is written off, and the allowance is adjusted to 5% What is the expense in the Statement of Profit or Loss?
a $6,650
b $7,150
c $8,150
d $9,150
39 A company has receivables of $270,000 and an allowance of $13,500 at 30 June 2023 During 2024, $8,000 is written off, and receivables are $280,000 at year-end The allowance is set to 4% What is the expense in the Statement of Profit or Loss?
a $5,380
b $6,700
c $7,700
d $8,700
40 At 31 December 2023, receivables are $230,000, with an allowance of $11,500 During
2024, $6,000 is written off, and receivables are $240,000 at year-end The allowance
is adjusted to 3% What is the expense in the Statement of Profit or Loss?
a $1,020
b $3,200
c $4,200
d $5,200
41 A companys receivables are $120,000, including $6,000 irrecoverable and $3,000 specif-ically allowed for Cash of $2,000, previously written off, is received What is the revised receivables figure?
a $116,000
b $114,000
Trang 10c $113,000
d $115,000
42 At 30 June 2023, a companys allowance for receivables was $8,000 At 30 June 2024, receivables are $170,000, $5,000 is written off, and the allowance is adjusted to 4% What is the expense in the Statement of Profit or Loss?
a $3,600
b $4,600
c $5,600
d $6,600
43 A companys receivables at 31 December 2023 are $200,000, with an allowance of
$10,000 During 2024, $5,000 is written off, and receivables are $210,000 at year-end The allowance is set to 5% What is the expense in the Statement of Profit or Loss?
a $5,250
b $6,250
c $7,250
d $8,250
44 A companys trial balance shows receivables of $100,000, including $5,000 irrecoverable and $2,000 specifically allowed for Cash of $1,000, previously allowed for, is received What is the revised receivables figure?
a $94,000
b $95,000
c $93,000
d $96,000
45 At 31 March 2023, a companys allowance for receivables was $7,000 At 31 March
2024, receivables are $160,000, $4,000 is written off, and the allowance is adjusted to 5% What is the expense in the Statement of Profit or Loss?
a $4,800
b $5,300
c $6,300
d $7,300
46 A company has receivables of $260,000 and an allowance of $13,000 at 30 June 2023 During 2024, $7,000 is written off, and receivables are $270,000 at year-end The allowance is set to 4% What is the expense in the Statement of Profit or Loss?
a $4,520
b $5,800
c $6,800
d $7,800
Trang 1147 At 31 December 2023, receivables are $240,000, with an allowance of $12,000 During
2024, $6,000 is written off, and receivables are $250,000 at year-end The allowance
is adjusted to 3% What is the expense in the Statement of Profit or Loss?
a $1,320
b $3,250
c $4,250
d $5,250
48 A companys receivables are $130,000, including $7,000 irrecoverable and $3,000 specif-ically allowed for Cash of $2,000, previously written off, is received What is the revised receivables figure?
a $125,000
b $124,000
c $122,000
d $123,000
2 Part 2: Answers with Detailed Explanations
1 a $52,800 Explanation: Write-off: $88,800 (expense) Receivables after write-off:
$1,240,800 - $88,800 = $1,152,000 New allowance: 5% of $1,152,000 = $57,600 Previous allowance: $93,600 Adjustment: $57,600 - $93,600 = -$36,000 (credit) Net expense: $88,800 - $36,000 = $52,800
2 a $6,050 Explanation: Write-off: $4,000 (expense) Receivables after write-off:
$185,000 - $4,000 = $181,000 New allowance: 5% of $181,000 = $9,050 Previous allowance: $7,000 Adjustment: $9,050 - $7,000 = $2,050 (debit) Total expense:
$4,000 + $2,050 = $6,050
3 d $139.20 Explanation: Write-off: $2,040 (expense). New allowance: 2% of
$173,760 = $3,475.20 Previous allowance: $5,376 Adjustment: $3,475.20 - $5,376 = -$1,900.80 (credit) Total expense: $2,040 - $1,900.80 = $139.20
4 c $45,500 Explanation: Receivables: $50,000 Write off Mikes debt: $50,000
-$2,500 = $47,500 Cash from Ken (recovery): $47,500 + $1,800 = $49,300 Cash from John: $49,300 - $2,900 = $46,400 Closest option: $45,500 (possible question error)
5 a Receivables: $766,000; Allowance: $60,000 Explanation: Receivables: $838,000
- $72,000 write-off = $766,000 Allowance adjusted to $60,000 Net receivables:
$766,000 - $60,000 = $706,000
6 a $4,800 Explanation: Writeoff: $5,000 Receivables after writeoff: $250,000
-$5,000 = $245,000 New allowance: 4% of $245,000 = $9,800 Previous allowance:
$10,000 Adjustment: $9,800 - $10,000 = -$200 (credit) Total expense: $5,000 - $200
= $4,800
7 a $4,300 Explanation: Writeoff: $10,000 Receivables after writeoff: $320,000
-$10,000 = $310,000 New allowance: 3% of $310,000 = $9,300 Previous allowance:
$15,000 Adjustment: $9,300 $15,000 = $5,700 (credit) Total expense: $10,000