Bad debt amount should be credited to the _________ account.

Debtors

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Bad debts

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Sales

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Creditors

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Solution

The correct option is A Debtors
Bad debts are the amount due from the debtors which are either declared as bad or doubtful. Bad debt is a loss to the organization and should be debited to profit & loss account as indirect expenses by reducing the amount of debtors.
Accounting entry to be passed on account of bad debt is as under:

Bad Debts A/c Dr.
To sundry Debtors

Suggest Corrections

A. Bad Debts A/c To Consignment Debtors A/c	Dr.
B. Bad Debts A/c To Profit & Loss A/c	Dr.
C. Bad Debts A/c To Consignee A/c	Dr.
D. No entry is required to be passed