To write off bad debt, debt?

Assessment: JAMB UTME - Principles of Accounts - 2000 Subject: Financial Accounting

Question 1 Report

To write off bad debt, debt?
Answer Details
"To write off bad debt" means to remove or cancel an amount that was expected to be paid but is now considered unlikely to be collected. When a business determines that a debt is uncollectible, it needs to remove the amount from its accounts so that it can have a more accurate view of its financial situation. This process involves debiting the bad debt account and crediting the debtor's account. So, the answer is "bad debt account and credit debtor's account". The other options are incorrect as they do not accurately describe the accounting process for writing off bad debt.
Read lesson note on Incomplete Records And Single Entry (JAMB)
Read lesson note on Nature And Significance Of Accounting (JAMB)
View Answer

Related Questions

1

Given Dept A Dept B Floor space 40m2 60m2 Machine hours 1200 1400 Turnover ₦36 million ₦64 million Labour hours 1000 1400 A joint cost of ₦72 million incurre...
2

Use the information below to this question Cost of raw materials consumed 300,600 Carriage inwards 6,700 Returns of raw materials 10,800 Closing stock of raw...
3

Use the information below to this question Cost of raw materials consumed 300,600 Carriage inwards 6,700 Returns of raw materials 10,800 Closing stock of raw...
4

On November 1, 199 8, Zaria Holdings owed ₦13,600 in respect of a creditor. On November 15, it purchase goods worth ₦69,000 and paid a cheque of ₦51,600. On ...
5

Yahuza Enterpises Trial Balance (Extracts) as at Dec. 31, 1998. Capital Premises 90,000 21,000 Debtors 35,000 Provisions 1/1/98: Depreciation 9,000 Bad and d...
6

The items entered in an opening statement of affairs of an enterprise that keeps incomplete record are
7

The accounting convention which stipulates that money or goods taken from the business by the owner for personal use should be treated as deductions from cap...
8

Amin Ltd. Creditor Ledger Control Account (Extracts) Beginning control account Balance: Debit 32,000 Credit 61,000 Purchases during the year: Cash 30,000 Cre...

Download The App On Google Playstore

Everything you need to excel in your exams

Green Bridge CBT Mobile App
Personalized AI Learning Chat Assistant
200,000+ Exam Questions Across IGCSE, JAMB, WAEC & NECO
Over 3,900 Lesson Notes
Offline Support - Learn Anytime, Anywhere
Green Bridge Timetable
Literature Summaries & Potential Questions
Track Your Performance & Progress
In-depth Explanations for Comprehensive Learning