Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 36 - No. 34)
What is the effect of recording an increase in the provision for doubtful debts on the ledger accounts?
Debit the provision account and credit the income statement.
Credit the provision account and debit the income statement.
Debit the provision account and debit the income statement.
Credit the provision account and credit the income statement.
Explanation
The provision account is credited, and the expense account (income statement) is debited.
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