The financial manager of Steven Traders hired an inexperienced bookkeeper, on 1 February 20.19, who was immediately required to assist with the creation of an allowance for credit losses (current financial year ends on 28 February 20.19). The auditors of Steven Traders raised an audit finding in the previous financial period, stating that trade and other receivables were overstated since no allowances for credit losses has been created although there was evidence that some of the debtors did not pay their accounts in the previous financial periods. The financial manager wants to avoid this audit finding in the current financial period. The financial manager requested the bookkeeper to write a memo and indicate which accounts will be affected when the allowance for credit losses is created? The bookkeeper has written the following statement down and requires you to confirm whether the statement is true or false when the allowance for credit losses is created. When the allowance for credit losses is created, credit the credit losses account and debit the allowance for credit losses account. Select one: True False