Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 13 - No. 9)
If a business writes off an irrecoverable debt, what is the journal entry?
Debit the irrecoverable debt expense account, credit the trade receivable account.
Debit the trade receivable account, credit the irrecoverable debt expense account.
Debit cash, credit the trade receivable account.
Debit trade receivable account, credit cash.
Explanation
The expense account is debited (increased), and trade receivables are credited (decreased).
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