Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 4 - No. 23)
What is the journal entry when writing off an irrecoverable debt, assuming the provision method is in use?
Debit Doubtful Debt Expense, Credit Trade Receivables.
Debit Trade Receivables, Credit Doubtful Debt Expense.
Debit Provision for Doubtful Debts, Credit Trade Receivables.
Debit Trade Receivables, Credit Provision for Doubtful Debts.
Explanation
When a specific debt is deemed uncollectible, the provision is used to write off the debt, reducing the trade receivables.
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