Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 22 - No. 25)
What is the result of an adjustment to write off an uncollectible debt?
Increase in provision for doubtful debts and decrease in accounts receivable.
Decrease in provision for doubtful debts and increase in accounts receivable.
Increase in accounts receivable and decrease in provision for doubtful debts.
Decrease in accounts receivable and decrease in provision for doubtful debts.
Explanation
Writing off an uncollectible debt means the account receivable is removed and the provision for doubtful debts is increased.
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