Debts that a firm is unable to recover are debited to bad debts account and credited to?

A. Suppliers account
B. Sales account
C. Customers account
D. Cash account

Correct Answer: Option A

A. Suppliers account

Explanation

The entry to write off a bad account affects only balance sheet accounts: a debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable.

Accounts receivable is a legally enforceable claim for payment held by a business for goods supplied and/or services rendered that customers/clients have ordered but not paid for.