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Rs. 200 received from Smith shoes account, was written off as a bad debt should be credited to : 
  • a)
    Bad Debts Recovered account
  • b)
    Smith’s account;
  • c)
    Cash account 
  • d)
    Bad debts account 
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Rs. 200 received from Smith shoes account, was written off as a bad de...
At the time of bad debt entry was bad debt account to Smith account but now it is recovered so the entry that is made is cash account dr/to debt recovered account because it is income now so it is credited
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Rs. 200 received from Smith shoes account, was written off as a bad de...
The Rs. 200 received from Smith shoes account, which was written off as a bad debt, should be credited to the Bad Debts Recovered account.
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Rs. 200 received from Smith shoes account, was written off as a bad debt should be credited to :a)Bad Debts Recovered accountb)Smith’s account;c)Cash accountd)Bad debts accountCorrect answer is option 'A'. Can you explain this answer?
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