passwella.
Menu

WAEC Financial Accounting 2010 Question 25

Question 25

Bad Debts and Provisions

Bad debts written off is shown as

  1. A.debit in the sales ledger
  2. B.debit in the purchases ledger
  3. C.credit in the sales ledger
  4. D.credit in the purchases ledger
Show the answer and explanation

Answer: C (credit in the sales ledger)

Explanation

Writing off a bad debt reduces what the customer owes, so the customer's account in the sales ledger is credited.