Paper 1 · June 2020 · Bad debts and provisions
A decrease in the provision for bad debts is recorded as a
Acredit in the bad debts account.
Bcredit in the provision for bad debts account.
Cdebit in the profit and loss account.
Ddebit in the provision for bad debts account.
Explanation
The provision account carries a credit balance, so reducing it means debiting it. The other side of the entry is a credit in the profit and loss account, which is a gain rather than an expense.
ZIMSEC Principles of Accounting Paper 1, June 2020, Q1