Post Utme Osustech 2017 Accounting Question 16

Practice objective / multiple choice question 16 from the 2017 Post Utme Osustech Accounting examination.

Post Utme Osustech 2017 Accounting Objective / Multiple Choice
Question 16 POST_UTME_OSUSTECH • 2017 • ACCOUNTING • objective

A company's trial balance shows a debit balance of ₦15,000 in the account 'Allowance for Doubtful Debts'. What is the correct treatment of this account in the preparation of the financial statements?

Answer Options

A. Debit the Allowance for Doubtful Debts account and credit the Bad Debts Expense account.
Correct Answer B. Credit the Allowance for Doubtful Debts account and debit the Bad Debts Expense account.
C. Debit the Bad Debts Expense account and credit the Allowance for Doubtful Debts account.
D. Credit the Allowance for Doubtful Debts account and debit the Allowance for Doubtful Debts account.
Correct Answer
B
Correct Option:
Credit the Allowance for Doubtful Debts account and debit the Bad Debts Expense account.

About This Question

This is Post Utme Osustech 2017 Accounting Question 16. It is one of the objective questions from the 2017 Post Utme Osustech Accounting examination.

View More Post Utme Osustech 2017 Accounting Questions More Post Utme Osustech Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support