O-LevelAccountingAccounting procedures7707/12 · May/June 2025 · Q171 Mark

Why does a trader write off money owed by a credit customer as an irrecoverable debt?

Abecause the credit customer has not paid their account at the end of the trading period

Bbecause the credit customer has not paid their account by the due date

Cbecause the credit customer is no longer buying goods from the trader

Dbecause the credit customer is not able to pay their account

✓ Correct answer

D: because the credit customer is not able to pay their account

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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2025 Paper 1 Variant 2, question 17.

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