Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 37 - No. 46)

When should a company write off an irrecoverable debt?
When the customer is late making a payment.
When the company receives cash from the customer.
When the debt is deemed uncollectible.
When the customer files for bankruptcy.

Explanation

A write-off occurs when it becomes clear that the debt cannot be collected.

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