CAF-1 · Chapter 13 · Question 9 of 15
If an NPO decides to write off unpaid subscriptions from members who have left the club, how is this transaction recorded?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) As a bad debt expense in the statement of income and expenditure and credited against the subscription account.
Explanation
Writing off unpaid subscriptions involves recognizing a bad debt expense in the statement of income and expenditure and crediting the subscription arrears (receivable) account.
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