Accounting for Bad Debts
13 September 2012
In preparing for assessment at the Foundation level, students need to develop competence in the procedure for accounting for bad debts.
It is likely that students will have to deal with writing off a bad debt in the examination for Unit 3 Preparing Ledger Balances and an Initial Trial Balance. The Range Statement for element 3.2, Prepare Ledger Balances and Control Accounts includes under the heading of adjustments – "to write off bad debts".
Businesses debtor balances represent an important element of...