The debts written off as bad, if recovered subsequently, are ___________________.

Credited to Bad Debts Recovered Account

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Credited to Debtors Account

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Debited to Profit and Loss Account

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None of these

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Solution

The correct option is A Credited to Bad Debts Recovered Account
While journalizing for bad debts debtor's personal account is credited and bad debts account is debited because bad debts written off are treated as a loss to the business and now when they are recovered it is seen as a fresh gain.

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