7 A business maintains a provision for doubtful debts of 5% per annum. It has trade receivables
balances of $560 000 at the start and $468 000 at the end of the financial year,
Which statements are correct?
1 Customers' accounts have been credited with $4600.
2 $4600 is treated as income in the income statement.
3 $4600 is deducted from current assets in the statement of financial position,
A 1, 2 and 3 B 1 only C 2 only
D 2 and 3 only

Q3. loral corporation manufactures parts for an aircraft company. it uses a computerized numerical controlled (cnc) machining center to produce a specific part that has a design (nominal) target of 1.275 inches with tolerances of ± 0.020 inch. the cnc process that manufactures these parts has a mean of 1.285 inches and a standard deviation of 0.005 inch. compute the process capability ratio and process capability index, and comment on the overall capability of the process to meet the design specifications.