Bad debt amount should be credited to the ___________ account

Debtors

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Bad debts

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Sales

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Creditors

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Solution

The correct option is A
Debtors

Debtors
Bad debts refer to the amount that the firm has not been able to realise from its debtors. It is regarded as a loss and is termed as bad debt.
Therefore, the correct option is (A)

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Similar questions

Rahul's trial balance provide you the following information:

$\begin{matrix} Debtors & R s . 80, 000 Bad debts & R s . 2, 000 Provision for bad debts & R s . 4, 000 \end{matrix}$

It is desired to maintain a provision for bad debts of Rs. 1,000. State the amount to be debited/credited in profit and loss account.

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