Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 1 - No. 13)
What is the purpose of a provision for doubtful debts?
To estimate and record potential losses from uncollectible customer debts.
To record debts that are definitely going to be uncollectible.
To reduce the amount of cash available.
To increase revenue by writing off bad debts.
Explanation
A provision for doubtful debts is used to estimate potential losses.
Comments (0)
