Accounting 0452 · IGCSE · Irrecoverable debts and provision for doubtful debts

Irrecoverable debts and provision for doubtful debts — practice question

Which of the following statements about a debts recovered account is accurate?

  • AThe account is used when an amount, previously written off, is received from a customer.
  • BThe account is used when doubtful debts are recovered.
  • CThe balance of the account is debited to the income statement at the end of the year.
  • DThe balance of the account is shown in the statement of financial position.

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