Entry for bad debts is recorded in the ______.

Sales book

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Purchase book

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Cashbook

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Journal proper

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Solution

The correct option is D Journal proper
A book maintained to record transactions, which do not find place in special journals, is known as Journal Proper or Journal residual.
Bad debts are accounts receivable that a company does not expect to collect and has written off to income statement as an expense, Bad debts are also called irrecoverable debts. Entry for bad debts is recorded in the Journal Proper.
The following transactions are recorded in the journal:
1. Opening entries
2. Adjustment entries
3. Rectification entries
4. Transfer entries
5. Other entries

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