Question

Rs. 2100 received from Mr. David which was earlier written off as bad debt will be credited to ___________.

• A. David A/c
• B. Debtors A/c
• C. Bad debts recovered A/c
• D. profit and loss A/c

Answer 1

The correct option is C Bad debts recovered A/c

The amount which are not recoverable from the customers to whom goods were sold on credit, considered as loss to the business. These are called bad debts and to be debited to bad debts written off a/c.

If the same amount is recovered later on, this will be treated as income and to be credited to "Bad debts recovered a/c."