Accounting 9706 · AS & A Level · Reconciliation and verification

Reconciliation and verification — practice question

By what method is a reduction in the provision for doubtful debts recorded?

  • Ain the income statement: added to gross profit; in the provision for doubtful debts account: credit
  • Bin the income statement: added to gross profit; in the provision for doubtful debts account: debit
  • Cin the income statement: subtracted from gross profit; in the provision for doubtful debts account: credit
  • Din the income statement: subtracted from gross profit; in the provision for doubtful debts account: debit

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