Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 28 - No. 32)
Which financial statement is directly impacted when a debt is written off using the allowance method?
Income Statement only
Balance Sheet only
Both Income Statement and Balance Sheet
Neither Income Statement nor Balance Sheet
Explanation
Writing off a debt affects the balance sheet because it decreases the value of the trade receivables and the allowance.
Comments (0)
