G co has been notified that a customer has been declared bankrupt. G co had previously made allowance for this receivable.
Which of the following is correct double entry?
A) Dr Allowance for receivable
Cr Receivable
B) Dr Irrecoverable debt
Cr Receivable
Ask the Tutor ACCA FA
Receivable
5y ago#1This should not really be asked in the exam because, as I explain in my free lectures, the correct end result can be achieved using either of the two entries.
However, if it is asked as a 'one-off' entry as here, then the entry to choose is the first one (A).
Sign into reply to this topic.