Lesson Plan

• Describe the difference between the direct write‑off method and the allowance (provision) method for bad debts.
• Apply the correct journal entry to write off an irrecoverable debt using either method.
• Calculate and record the year‑end adjusting entry for the provision for doubtful debts.
• Post the journal entries to the appropriate ledger accounts and interpret the resulting balances.

• Projector and screen
• Whiteboard and markers
• Student worksheets with sample debtor ledgers
• Calculator for percentage calculations
• Printed handout of journal entry formats
• Accounting textbook (IGCSE Accounting 0452)

Begin with a quick poll: “What would you do if a customer never pays?” Connect responses to the concept of bad debts. Review the previous lesson’s coverage of trade receivables and expense recognition. State today’s success criteria: students will correctly choose a method, prepare the journal entry, and post it to the ledger.

1. Do‑now (5'): Students list situations where each bad‑debt method is appropriate.
2. Mini‑lecture (10'): Explain direct write‑off vs. allowance method, show example journal entries.
3. Guided practice (12'): Work through the £2,500 write‑off for ABC Ltd using the direct method; students post to ledger on worksheet.
4. Group activity (15'): Calculate required provision for a £30,000 debtor balance at 5% and prepare the adjusting entry; then simulate writing off a specific £1,200 debt using the allowance method.
5. Check for understanding (5'): Quick quiz via Kahoot/hand raise on entry direction and ledger impact.
6. Exam‑question walkthrough (8'): Students follow the 8‑step procedure to answer a sample IGCSE question.
7. Reflection (5'): Students write one thing they found tricky and one strategy to avoid the common pitfalls listed.

Summarise how the two methods differ in timing of expense recognition and ledger effects. Ask each student to submit an exit ticket: one correct journal entry for a given scenario. Assign homework to complete a worksheet that includes both methods and a short calculation of a new provision percentage.