PRC-1 · Chapter 2 · Question 76 of 100
Which of the following is an example of an entry that MUST go through the General Journal?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) The calculation and recording of a provision for doubtful debts at year-end.
Explanation
Year-end accounting estimates and provisions do not involve cash flows or routine inventory buying/selling. Thus, they must be processed via journal entries in the General Journal.
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