WorksheetsBAD DEBTS AND DOUBTFUL DEBTS
Total questions: 10
Worksheet time: 8mins
An increase in the provision for doubtful debts would result in _______________.
an increase in revenue
an increase in expenses
a decrease in expenses
a increase in expenses
A decrease in the provision for doubtful debts would result in ______________.
a decrease in net profit
an increase in net profit
a reduction in gross profit
an increase in gross profit
Bad debts can be classified as a/an _______________.
current asset
expense
non-current asset
equity
State the double entries to record an increase in provision for bad debts.
Debit. Statement of Profit or Loss
Credit. Provision for doubtful debts
Debit. Bad debt
Credit: Provision for bad debt
Debit. Provision for bad debt
Credit. Statement of Profit or Loss
Debit Provision for bad debt
Credit. Bad debt
What is debt?
Money that is spent
Money that is owed because of borrowing
Money that you lend to others
Money earned from business activities
Credit means you ________now and ________ it back later.
Borrow, Pay
Pay, Borrow
Pay, Pay
Borrow, Borrow
Under the allowance method, the journal entry to write off an uncollectible account is _______.
Debit. Allowance for Doubtful Accounts
Credit. Accounts Receivable
Debit. Accounts receivable
Credit. Allowance for Doubtful Accounts
Debit. Bad Debts Expense
Credit. Accounts Receivable
Debit. Accounts Receivable
Credit. Bad Debts Expense
Under the allowance method, the journal entries to record uncollectible accounts expense is _______.
Debit. Allowance for Doubtful Debt
Credit. Bad Debts
Debit. Bad Debts
Credit. Allowance for Doubtful Debts
Debit. Bad Debts
Credit. Accounts Receivable
Debit. Accounts Receivable
Credit: Bad Debts
The cash discount (also known as purchase discount or sale discount) is given to customers for ______.
early payments
bulk purchase
frequent purchases
good business relations
Thomas is unable to pay the debt he owes to Ramesh.
Advise Ramesh on the accounting record for this situation.
Debit - Bad debts
Credit - Statement of Profit or Loss
Debit - Bad debts
Credit - Thomas Account
Debit - Statement of Profit or Loss
Credit - Thomas Account
Debit - Thomas Account
Credit - Statement of Profit or Loss
