How will you record increase in Provision for Doubtful Debts while preparing Cash Flow Statement?

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Solution

Provision for Doubtful Debts will be added to Operating Activities while preparing Cash Flow Statement.

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What is meant by provision for doubtful debts? How are the relevant accounts prepared and what journal entries are recorded in final accounts? How is the amount for provision for doubtful debts calculated?

What is meant by provision for doubtful-debts? How are the relevant accounts prepared and what journal entries are recorded in the final accounts? How is the amount for provision for doubtful-debts calculated?

Q. State whether Revaluation Account is debited or credited to record the increase in Provision for Doubtful Debts.

Which account is credited while creating a provision for doubtful debts in the books?

Which account is debited while creating a provision for doubtful debts in the books?

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