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

Irrecoverable debts and provision for doubtful debts — practice question

Sally wanted to raise the balance in the provision for doubtful debts account at the close of the financial year. In what way should this increase be recorded?

  • Adebit income statement; credit provision for doubtful debts account
  • Bdebit irrecoverable debts account; credit provision for doubtful debts account
  • Cdebit provision for doubtful debts account; credit income statement
  • Ddebit provision for doubtful debts account; credit irrecoverable debts account

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