Provision for Bad Debt and Provision for Discount Allowed and Received

Illustration For year end 30/6/ 2005, details as follows: Total Debtors                                      –                      ₦100, 000 Provision for Doubtful debts             –                      ₦10, 000 Provision for Discount Allowed         –                     2%   Let’s look at the Accounting treatment: Debit: Discount Allowed (Income Statement) ₦1, 800 Credit: Provision for Discount Allowed…