In 20X0, in the accounts of X, the accountant created a provision for a doubtful debt of £100 in respect of Y. In 20X1 the accountant has found out that this debt is totally irrecoverable. Which of the following double entries is the correct way to deal with this new information in 20X1?

Question

Quizplus · Accepted Answer

When a debt previously provided for as doubtful turns out to be irrecoverable, the correct accounting entry is to remove the amount from both the provision for doubtful debts account and the debtor's account. This reflects the realization that the debt will not be collected, adjusting the accounts accordingly.

In 20X0, in the Accounts of X, the Accountant Created