The amount of bad debts is:
Profit
Income
Expenditure
Loss
The bad debt is treated in profit and loss account as:
Expense
Gain
Estimate of the amount which a business will lose in a financial year because of bad debts is known as:
Provision for bad debts
Bad debts
Written off debts
Credit control
The amount owing to a business which is not paid by the debtor.
Bad debt
Credit
Gains
At the end of the year, bad debts recovered account is transferred to the bad debts account. This will be:
Loss of the year
Reduces the bad debts written off during the year
Not affect at all
Increases the profit
At the end of the year, a bad debt recovered is treated as :
Profit of the year
Income of the year
The establishing of a credit limit and the later monitoring of the debtors account is known as:
Credit limit
Over credit
The concession allowed, when debtors make immediate payment is known as:
Provision
Discount
New provision
Where will be the difference between provision for bad debts posted?
Profit and loss account
Balance sheet
Journal
Ledger
Discount is allowed for:
Doubtful debts
No debts
Creditors