What is a provision for bad debts - SS1 Accounting Bad Debts And Provision For Bad Debts: Meaning Question
What is a provision for bad debts?
A
A legal document that allows a business to recover its bad debts
B
An accounting entry that sets aside a portion of a company's revenue to cover potential future losses from bad debts
C
A loan that a business takes to cover its bad debts
D
A strategy that a business uses to avoid bad debts
correct option: b
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