Journal entry for writing off irrecoverable debt

Steps:

• Recognize the event: On 31 March 2021, Shila writes off Tahrir's debt as irrecoverable, before year-end on 30 April.
• Apply double-entry principle: Debit an expense account to recognize the loss.
• Debit Irrecoverable debts (expense in income statement) to record the bad debt.
• Credit Tahrir (accounts receivable) to remove the uncollectible amount from assets.

Why the correct option is correct:

• Writing off a bad debt follows the rule: debit bad debt expense (Irrecoverable debts) and credit the debtor's account (Tahrir) to reflect the loss and reduce receivables.

Why the others are wrong:

• A: Income statement is not directly debited; the expense account (Irrecoverable debts) is used instead.
• C: Identical to B, but assuming duplication; not separately wrong.
• D: Reverses the entry; debiting Tahrir would increase receivables, which is incorrect.

Final answer: B