O-LevelAccountingAccounting procedures7707/11 · Oct/Nov 2013 · Q131 Mark

During the year CN Ltd wrote off an unpaid invoice of $540. Which entries should CN Ltd make at the end of the financial year?

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Adebit bad debts credit customer

Bdebit bad debts credit income statement

Cdebit customer credit bad debts

Ddebit income statement credit bad debts

✓ Correct answer

D: debit income statement credit bad debts

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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2013 Paper 1 Variant 1, question 13.

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