Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 46 - No. 45)
What does a company use to record irrecoverable debts?
Allowance for Doubtful Debts.
Cash.
Bad Debt Expense.
Accounts Receivable.
Explanation
Irrecoverable debts are recorded through an allowance for doubtful debts (contra-asset) and bad debt expense to reflect the anticipated loss.
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