Debts that a firm is unable to recover are debited to bad debts account and...

Accounts - Principles of Accounts

WAEC 2016

Debts that a firm is unable to recover are debited to bad debts account and credited to

A. Suppliers account
B. Sales account
C. Customers account
D. Cash account

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Correct Answer: Option A

Explanation

The entry to write off a bad debt account affects only balance sheet accounts: a debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable.

Accounts receivable is money owed to a company by its debtors.

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Debts that a firm is unable to recover are debited to bad debts account and...

Correct Answer: Option A

Explanation

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