When you have a reasonable doubt that the debt is not fully/partly recoverable, then you make a _______

Bad debts recovered

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Debtors ageing report

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Provision for bad & doubtful debts

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Provision for tax

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Solution

The correct option is C
Provision for bad & doubtful debts

When you have a reasonable doubt that the debt is not fully/partly recoverable, then you make a provision for bad & doubtful debts.

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

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