Does irrecoverable debt decreases Receivable ledger balances (individual ledger) or it is only shown in Receivables in SOFP (by decreasing receivable)?
The reason to ask is that, debt collection department may feel it no more need to track that specific customer. It should track therefore receivable ledger should not need to be decreased.
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Receivables
4y ago#1Irrecoverable debts are removes from both the receivables ledger and from the total receivables account (the receivables ledger control account).
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