A company has been informed that a credit customer has just been declared bankrupt. The balance on his account was £1,000. Which of the following is the correct double entry?
A) Dr. Bad debts a/c £1,000.
B) Cr. Trade receivables a/c £1,000
C) Dr. Trade receivables a/c £1,000.
D) Cr. Bad debts a/c £1,000
E) Dr. Provision for doubtful debts a/c £1,000
F) Cr. Trade receivables a/c £1,000 .
G) Dr. Trade receivables a/c £1,000 .
H) Cr. Provision for doubtful debts a/c £1,000.
Correct Answer:
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Q1: An increase in the provision for doubtful
Q2: Which of the following statements about trade
Q3: Increases in the provision for doubtful debts
Q4: Entities make provision for bad debts in
Q5: To make a provision for bad debts
Q7: The entity has trade receivables of £5,000
Q8: On 31 December the following balances existed
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