Question：Doggard Co is a business that sells second hand cars. If a car develops a fault within 30 days of the sale, Doggard Co will repair it free of charge.
At 30 April 20X4 Doggard Co had made a provision for repairs of $2,500. At 30 April 20X5 Doggard Co calculated that the provision should be $2,000.
What entry should be made for the provision in Doggard Co's income statement for the year to 30 April 20X5?
A. A credit of $2,000
B. A charge of $500
C. A charge of $2,000
D. A credit of $500
The correct answer is:A credit of $500.
Doggard Co needs to reduce the provision by $500 ie a credit to the income statement.
　　高顿网校温馨提醒
　　为了方便各位学员能更加系统地掌握考试大纲的重点知识，帮助大家充分备考，体验实战，高顿网校开通了全免费的ACCA题库（包括精题真题和全真模考系统），题库里附有详细的答案解析，学员可以通过多种题型加强练习。戳这里进入ACCA免费题库>>>

微信扫一扫，关注ACCA*7资讯，满满的干货喂饱你！ACCA微信公众号：gaodunaccaACCA分享与交流QQ群：227573128 

展开全文