The entry for creating a Provision for bad debts is_____________?
Tap an option to check your answer.
✅ Correct answer: D. Debit Profit and Loss A/c and credit Provision for Bad Debts A/c.
Explanation:
Option A : Debit Provision for Bad Debts A/c and credit Debtors A/c
Option B : Debit Debtors A/c and credit Provision for Bad Debts A/c
Option C : Debit Provision for Bad Debts A/c and credit Profit & Loss A/c
Option D : Debit Profit and Loss A/c and credit Provision for Bad Debts A/c.
Correct Answer : Debit Profit and Loss A/c and credit Provision for Bad Debts A/c.
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