Provision for doubtful debts is created based on: MCQ with Answer and Explanation

Explanation:
Discount Allowed and Discount Received are separate nominal accounts. Their columns are only totalled and posted directly to the respective ledger accounts.

Explanation:
Narration is a short description of the transaction written in brackets immediately below the journal entry.

Explanation:
It is a revenue expense whose benefit is expected to extend beyond one accounting period, so it is amortized over a few years.