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Provision for bad debts is calculated on:
creditors.
Sales.
Purchases
Debtors.
The provision for doubtful debts is the estimated amount of bad debt that will arise from accounts receivable that have been issued but not yet collected. It is identical to the allowance for doubtful accounts In other words, the amount of the provision for discount is calculated after deducting bad debts and provision for doubtful debts from sundry debtors
Report error
Richa Goyal
It should be debtors answer don't .arch with ur explanation
Manbir Singh
again same wrong answer given in this test
Wrong Answer given
Kalyani Sisodiya
Here the answer is creditor or debtor.
Anmol Midha
PBD is always made on debtors not creditors
Rinki Goswami
shouldn't the answer be debtors?
An Agrl
Debtors
Runal Naik
answer should be debtors
Kirti Nandan Agrawal
as per explanation, option (d) 'debtors' is correct
SUSHIL KUMAR
Please check answer but explained correctly
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