Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 47 - No. 36)
When is the allowance for doubtful accounts increased?
When a specific account is written off.
At the end of the accounting period when the provision is increased.
When a customer makes a payment.
When the balance of the accounts receivable increases.
Explanation
The allowance is increased to reflect the estimate of uncollectible accounts, typically at the end of the period.
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