In the Situation That a Debtor Becomes Unable to Pay

question 30

Multiple Choice

In the situation that a debtor becomes unable to pay and the amount has not been anticipated through an provision for doubtful debts,what is the entry to record the bad debt?

• A) Dr Debtors; Cr Provision for doubtful debts.
• B) Dr Provision for doubtful debts; Cr Debtors.
• C) Dr Bad debts expense; Cr Cash.
• D) Dr Bad debts expense; Cr Debtors.
• E) None of the given answers.

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