Bad Debt write off question

Re:Bad Debt write off question

The shortest answer is: You have more information about the question than we do!
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The long answer depends on what unit you are doing the Skills test for. Written answer or double-entry to accounts?

Unless, contradicted by info in your course text, or the debt is piddly, and thus not worth bothering with... (And, thus has potential to be written off...) Then, in theory you should prepare the debtor's accounts ready to present a claim to the Official Receiver... Or if you are VERY quick, you could present your claim as (Creditor's) Petitioner, before they present theirs as Debtor's Petitioner...

It might be a good idea to follow the instructions given by the 'client's letter', as it is their money! I would certainly recommend to the 'client' to withhold any further sales.

(There seems to be a rush to let them off, without having to repay any money!!!)

If the question gives you the 'authority' to decide, then use it.(!)

NB The answer depends on which Unit you are doing - bookkeeping, then probably yes (they may even have labeled an account for you...), management info then probably not... (depends on cost/benefit)

Probably best to wait to see what the other viewers have to say...

Oh... it's 'bankrupt' for a person and 'insolvent' for a company.

If you use the search facility for 'Bad Debt', then you will get a list of threads (about a dozen?)
(But, be warned some of the threads are quite old, so the students talking are no longer on Foundation - probably Technician, instead...)