Provision for Bad Debt and Provision for Discount Allowed and Received

Profit & loss account                                                          Dr. Provisions for discount on debtors account                   Cr. For a decrease in the provision for discount on debtors: Provisions for discount on debtors account                   Dr. Profit & loss account                                                          Cr. Key points A debt written off is recorded in the books by debiting bad debts…

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