Select the most appropriate alternative from those given below: An amount which is irrecoverable is called ________ .
A
Bad debts
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B
R.D.D
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C
good debts
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D
doubtful debts
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Solution
The correct option is A Bad debts During the business operations, goods are sold on credit basis also. These are called sundry debtors and part of current assets.
There are few people , who in turn some time not pay the amount or party paid. Hence some amount is kept as unrecoverable which is called bad debts.