Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 4 - No. 12)
What does it mean to write off an irrecoverable debt?
To recognize the debt is uncollectible and reduce the amount owed.
To increase the amount of the debt owed.
To transfer the debt to a different account.
To ignore the debt.
Explanation
Writing off a debt acknowledges that it's unlikely to be paid and reduces the amount the company expects to receive.
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