CIMA BA3 · Chapter 5 · Question 9 of 10
A business decides to write off a customer's balance as irrecoverable. What is the double entry?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Debit Irrecoverable debts expense, Credit Receivables ledger control
Explanation
The debt is no longer an asset, so receivables is credited and the loss is charged to profit or loss as an irrecoverable debts expense. The customer's individual account is also credited.
More Receivables and payables control accounts MCQs
- Q1What is the main purpose of a receivables ledger control account?
- Q2Which of the following items would NOT appear in the receivables ledger control account?
- Q3The following information relates to a business's receivables for the year: opening balance $28,400; credit sales $196,500; cash sales…
- Q4A payables ledger control account had an opening credit balance of $19,700. During the year credit purchases were $143,200, payments to…
- Q5A receivables ledger control account shows a balance of $31,450, but the list of individual customer balances totals $30,980…