alleryStart learning →A customer owing Rs 8 lakh at 31 March goes bankrupt on 20 April. The entity should
AOnly disclose it
BWait for cash recovery
CAdjust the receivable
DBook the loss next year
Answer & Solution
Correct answer: C. Adjust the receivable
The later bankruptcy usually confirms the customer was credit-impaired at the reporting date, so the loss is adjusted.
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