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TMZ Limited who is currently a customer of Crown Limited, was declared bankrupt on the 6 July 2023. This was due to a deteriorating liquidity

TMZ Limited who is currently a customer of Crown Limited, was declared bankrupt on the 6 July 2023. This was due to a deteriorating liquidity position after the withdrawal of financial support by its bank over the past 3 months. Crown Limited was owed a material amount by TMZ Limited as at 30 June 2023 which will not be recoverable. How should bankruptcy of the customer be accounted for in the financial statements for the year ended 30 June 2023

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