Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 2 - No. 8)
A customer's account is deemed uncollectible. What is the journal entry to write off the debt?
Debit Bad Debt Expense, Credit Accounts Receivable.
Debit Accounts Receivable, Credit Bad Debt Expense.
Debit Cash, Credit Accounts Receivable.
Debit Bad Debt Expense, Credit Provision for Doubtful Debts.
Explanation
This decreases the value of accounts receivable and recognizes the expense.
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