If a company identified a Bad debt, such an amount should be credited to
A. Cash account
B. Trade Payable account
C. Trade Receivables account
D. Bad debt account
Answer:C
If a company identified a Bad debt, such an amount should be credited to
A. Cash account B. Trade Payable account C. Trade Receivables account D. Bad debt account
Explanation: Due to the identification of Bad debts, the Accounts receivable or Trade receivables balance is to be reduced. Therefore, the Trade receivables account should be credited.