Accounting Multiple Choice Question – 26 February 2020

In a sales ledger control account, bad debts written off should be shown as . . .

Select ONE answer:

1. a debit.
2. a balance carried down.
3. a credit.
4. 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

1. Not correct
2. Not correct
3. 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.
4. Not correct

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