Question

If all debtors are good is given in adjustment and provision for doubtful debts is given in the question then what to do???

Answer 1

$\huge\mathfrak{Answer:}$

A business typically estimates the amount of bad debt based on historical experience, and charges this amount to expense with a debit to the bad debtexpense account (which appears in the income statement) and a credit to the provision for doubtful debts account (which appears in the balance sheet).

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