- This topic has 1 reply, 2 voices, and was last updated 1 year ago by .
- You must be logged in to reply to this topic.
Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
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
B) Dr Irrecoverable debt
This 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).