Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 5 - No. 40)
When should a business use a provision for doubtful debts?
When debts are definitely uncollectible.
When debts are only slightly overdue.
When there is a risk of debts becoming uncollectible.
When debts are paid on time.
Explanation
A provision is used to account for the risk of customers not paying their debts.
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