Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 39 - No. 14)
When is the balance in the trade receivables account adjusted when writing off a bad debt?
When the cash is received from the customer.
At the end of the accounting year.
When the debt is deemed irrecoverable.
When the provision is established.
Explanation
The adjustment to the trade receivables account occurs when the debt is confirmed as irrecoverable.
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