Question

If del-credere commission is allowed for bad debt, consignee will debit the bad debt amount to ___________.

• A. Commission Earned A/c
• B. Consignor's A/c
• C. Debtors A/c
• D. General Trading A/c

Answer 1

The correct option is A Commission Earned A/c

The consignor allows del credere commission to the consignee when the consignee takes the responsibility of the bad debts that may arise. So, when the del credere commission is allowed for bad debt, consignee will debit the bad debt amount to the commission earned account as it is his expenses which he will write off against related income i.e. commission earned.