Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 4 - No. 28)
What happens to the balance of the 'Provision for Doubtful Debts' account when an irrecoverable debt is written off?
It increases.
It decreases.
It remains unchanged.
It becomes a liability.
Explanation
When a debt is written off, the provision account is debited to decrease its balance.
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