Question

If there is no existing provision for doubtful debts, provision created for doubtful debts is ______.

Options

• Debited to bad debts account

• Debited to sundry debtors account

• Credited to bad debts account

• Debited to profit and loss account

Answer 1

If there is no existing provision for doubtful debts, provision created for doubtful debts is debited to profit and loss account.