Irrecoverable debt
A receivable that will not be collected and is written off.
A trade receivable that is considered uncollectible and is written off to profit or loss.
Passende Übungsfragen
☝️ Single
A customer owing £700 is declared bankrupt and the debt is irrecoverable. How should the business record this?
Debit irrecoverable debts expense £700; credit trade receivables £700
Debit trade receivables £700; credit irrecoverable debts expense £700
Debit allowance for receivables £700; credit sales £700
Debit bank £700; credit trade receivables £700
Musterantwort und Erklärung siehst du nach der kostenlosen Anmeldung im Trainer. Jetzt kostenlos anmelden