A. provision for bad debts is deducted from debtors total in the Balance sheet
B. An increase in provision for bad debts appears on the debi side of the profit and loss account
C. a decrease in the provison for bad debts appears on the credit side of profit and loss accoun
D. the bas debt account is closed to the debit side of the profit and loss account
E. bad debt is a deduction from debtors total afte making provision for bad and boughtful debts
Correct Answer:
Option E – bad debt is a deduction from debtors total afte making provision for bad and boughtful debts
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