impairment of financial asset

Bad debts to P&L, as you say. In the exam - don't write journals unless you are asked for 'adjustments' - I know you know this, but journals are not explanations :) Table at top of page 11 of the below is helpful: https://www.pwc.com/gx/en/audit-services/ifrs/publications/ifrs-9/ifrs-9-understanding-the-basics.pdf