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A Company Has Been Informed That a Credit Customer Has

Question 6

Multiple Choice

A company has been informed that a credit customer has just been declared bankrupt. The balance on his account was £1,000. Which of the following is the correct double entry?


A) Dr. Bad debts a/c £1,000.
B) Cr. Trade receivables a/c £1,000
C) Dr. Trade receivables a/c £1,000.
D) Cr. Bad debts a/c £1,000
E) Dr. Provision for doubtful debts a/c £1,000
F) Cr. Trade receivables a/c £1,000 .
G) Dr. Trade receivables a/c £1,000 .
H) Cr. Provision for doubtful debts a/c £1,000.

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