Lesson Plan

• Define an irrecoverable (bad) debt and explain why a business writes it off.
• Differentiate between the direct write‑off method and the allowance (provision) method.
• Prepare correct journal entries for writing off a debt with and without a provision.
• Record the journal entry for recovering a debt that was previously written off.
• Calculate and adjust a provision for doubtful debts at the end of an accounting period.

• Projector and slide deck
• Whiteboard and markers
• Printed worksheet with journal‑entry practice
• Sample ledger extracts (trade receivables)
• Calculator for percentage calculations
• Handout of the provision & recovery flowchart

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 on trade receivables, then outline today’s success criteria – students will identify, journalise, and recover irrecoverable debts.

1. Do‑Now (5’) – Students list reasons a debt might become irrecoverable; share answers.
2. Mini‑lecture (10’) – Define irrecoverable debt, introduce direct write‑off vs. allowance method; show journal examples on screen.
3. Guided practice (12’) – Whole‑class walkthrough of journal entries for both methods using sample figures.
4. Independent activity (15’) – Worksheet: students complete journal entries for write‑offs and for a later recovery scenario.
5. Check for understanding (5’) – Quick quiz via Kahoot or show of hands on key steps; clarify misconceptions.
6. Recap & reflection (3’) – Students summarise the decision flowchart on sticky notes.

Review the five‑step checklist, emphasising the link between provision creation and later recovery. Exit ticket: write one journal entry for a recovered debt. Assign homework to calculate a year‑end provision using a 5% rate on a given receivables balance.