Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 19 - No. 23)
Which of the following does NOT affect the provision for doubtful debts?
Writing off a bad debt.
Increasing the percentage of sales.
A customer paying their outstanding balance.
Changes in economic conditions.
Explanation
The collection of an existing receivable doesn't change the provision, but it affects the cash balance.
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