Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 4 - No. 47)

What account(s) is/are affected when writing off an irrecoverable debt?

Irrecoverable debt account & Income Statement

Provision for doubtful debt account & Income statement

Cash and cash equivalents & Income statement

Trade receivables & Provision for doubtful debt account

Writing off an irrecoverable debt reduces the trade receivables and utilizes the provision for doubtful debts.