Bad debts written off go to:
Astatement of changes in equity
Bprofit or loss as expenseCORRECT
Cbalance sheet only
Dinvesting activities
ICANFinancial Accounting
AI
Toaster Teacher
Why the answer is B, and why the others tempt you.
Bad debts and movements in allowances are expensed to P&L.
Want this in Pidgin, Yoruba, Igbo or Hausa? Sign up free →
Practice more Financial Accounting questions
ICAN Financial Accounting has thousands more questions like this — with Worked answers on every one.