In a sales ledger control account, bad debts written off should be shown as . . .
Select ONE answer:
- a debit.
- a balance carried down.
- a credit.
- both a debit and a credit.
Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 3
- Not correct
- Not correct
- Correct – Debtors becoming bad debts means that less will now be collected from them than would otherwise have been the case. Therefore, the value of debtors (an asset) has been reduced. A credit entry is required to record a decrease in an asset account.
- Not correct
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