Bad debts recovered account will be transferred to______________?
AProvision for Doubtful Debt Account
BDebtor‘s Account
CEither B or C above
DProfit and Loss Account
Correct answer
C. Either B or C above
Explanation
When Bad debts are recovered the entry is Cash A/c …………………………………………………… Dr. To Bad debts recovered A/c This A/c can either be transferred to P& L A/c or Provisions for Doubtful Debts A/c.