Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 1 - No. 22)
Which of the following increases the provision for doubtful debts?
A payment is received from a customer whose debt was previously written off.
A customer declares bankruptcy and cannot pay.
A debt is determined to be collectible.
The allowance method is used.
Explanation
When a customer cannot pay, it impacts the amount of uncollectible debts.
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