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

Irrecoverable debts and provision for doubtful debts — practice question

Joseph sells goods on credit and keeps a provision for doubtful debts. He wishes to raise his provision for doubtful debts by $400. Which journal entry is used to show this increase in the provision for doubtful debts?

  • Adebit credit customer $400; credit income statement $400
  • Bdebit income statement $400; credit credit customer $400
  • Cdebit income statement $400; credit provision for doubtful debts $400
  • Ddebit provision for doubtful debts $400; credit income statement $400

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