Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 2 - No. 13)
What is the purpose of debiting the income statement with an expense to record the increase in provision for doubtful debts?
To make the balance sheet look better.
To reduce the company's taxable income.
To record the additional income the business expects to collect from its sales invoices.
To reduce the amount of income from sales for the year.
Explanation
Debit is an expense, that will reduce the overall amount of income during the year.
Comments (0)
