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.

Comments (0)

Advertisement