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Commerce · Q190

Accounting

Graduate and Post Graduate · Commerce · question 190

Q190

When it is certain that a debt won't be recovered. Which of the following is correct?

A.
Provision for bad debt is created
B.
Account receivable is credited
Answer
C.
Bad debts is credited
D.
Sales is debited

Answer: Option B

Solution

Answer: Option B
Solution:
When Account receivable is credited it is certain that a debt won't be recovered.