Analysis and communication of accounting information — practice question

Which one of the statements is correct?

• AThe balance on the irrecoverable debts account is carried down to the next accounting period.
• BThe balance on the irrecoverable debts account is treated as an expense in the income statement.
• CThe balance on the provision for doubtful debts account is calculated before the deduction of irrecoverable debts.
• DThe balance on the provision for doubtful debts account is not included in a trial balance.