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WAEC Financial Accounting 2016 Question 47

Question 47

Bad Debts and Provisions

Debts that a firm is unable to recover are debited to Bad Debts Account and credited to

  1. A.Suppliers Account.
  2. B.Sales Account.
  3. C.Customers Account.
  4. D.Cash Account.
Show the answer and explanation

Answer: C (Customers Account.)

Explanation

Writing off a bad debt clears the customer's (debtor's) account, so the customer's account is credited.