Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 20 - No. 26)
What are some reasons that may lead to writing off a bad debt?
The business does not receive payment for the goods or services
The customer is declared bankrupt
The customer is unable to pay the amount due to some reasons.
The business needs the funds to pay its bills.
Explanation
A debt is written off when there is no hope of the business receiving payment.
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