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

Irrecoverable debts and provision for doubtful debts — practice question

Devendra made the journal entry below: Debit: irrecoverable debts $714 Credit: Tobias $714 Which statement is correct?

  • ADevendra has provided for a doubtful debt owed by Tobias.
  • BDevendra has received the amount due from Tobias.
  • CTobias cannot pay the amount due to Devendra.
  • DTobias paid an amount previously written off by Devendra.

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