Question on: WAEC Accounting - 2016
Debts that a firm is unable to recover are debited to bad debts account and credited to
A
Suppliers account
B
Sales account
C
Customers account
D
Cash account
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Correct Option: A
The entry to write off a bad debt account affects only balance sheet accounts: a debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable.
Accounts receivable is money owed to a company by its debtors.
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