Bad debts are written off but recovered subsequently should be credited to
A. Profit and Loss account
B. Trade receivables account
C. Bad debts recovered account
D. Discount account
Answer:C
Bad debts are written off but recovered subsequently should be credited to
A. Profit and Loss account B. Trade receivables account C. Bad debts recovered account D. Discount account
Explanation: Bad debts which are not recovered, will be written off subsequently. But in the case recovered, later should be credited to the “Bad debts recovered account”