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Bad debts written off is shown as

Bad debts written off is shown as

  • A.
    debit in the sales ledger
  • B.
    debit in the purchases ledger
  • C.
    credit in the sales ledger
  • D.
    credit in the purchases ledger
Correct Answer: Option C
Explanation

The journal entry is a debit to the bad debt expense account and a credit to the accounts receivable account. (Remember your account receivables are credit sales that is the sales journal)