8: Irrecoverable debts and allowances Flashcards
1
Q
What is the double entry for receiving cash that we previously had an allowance for
A
Dr Cash
Cr Receivables
2
Q
What is the double entry for if we write off our customer’s debt and we previously had an allowance for the debt?
A
Dr Irrecoverable debt expense
Cr Receivables
3
Q
What is the double entry if we write off a debt as irrecoverable and the debt is subsequently recovered?
A
Dr Cash
Cr Irrecoverable debt expense
4
Q
What is the double entry if you want to increase the allowance for the next year?
A
Dr Irrecoverable debt expense
Cr Allowance for receivables
5
Q
What is the double entry if you want to decrease the allowance for the next year?
A
Dr Allowance for receivables
Cr Irrecoverable debt expense
