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UI Post-UTME Financial Accounting 2024 (Model questions) Question 24

Question 24

Bad Debts and Provisions

Bad debt is an item in

  1. A.Trading, profit and loss account
  2. B.consignment account
  3. C.Balance sheet
  4. D.Receipt and expenditure account
Show the answer and explanation

Answer: A (Trading, profit and loss account)

Explanation

Bad debts are an expense, so they are charged in the profit and loss account.