Debts that a firm is unable to recover are debited to bad debts account and credited to
-
Suppliers account
- Sales account
- Customers account
- Cash account
The correct answer is: A
Explanation
The entry to write off a bad debt account affects only balance sheet accounts: a debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable.
Accounts receivable is money owed to a company by its debtors.