Question 36
Bad Debts and ProvisionsTrade debts amounting to ₦300 were written off. Which of the following would be affected?
- A.Purchases
- B.Profit and Losses
- C.Creditors
- D.Sales Ledger
- E.Trading Account
Show the answer and explanation
Answer: D (Sales Ledger)
Explanation
The debtor's account in the sales ledger is credited to remove the debt (the expense later goes to profit and loss).