Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 44 - No. 46)

Which of the following items would be reduced in the accounting records when a debt is written off as irrecoverable?

Trade receivables

Cash

Provision for doubtful debts

Retained earnings

Explanation

When a debt is written off, trade receivables are decreased because the company no longer expects to receive the money. The provision for doubtful debts is decreased because the bad debt is now realized.

Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 44 - No. 46)

Explanation

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