Bad debts recovered is:

Accounting Mcqs 10/10/2021

A. Credited to P&L A/c
B. Debited to P&L A/c
C. Reduced from debtors in Balance Sheet
D. Added to debtors in Balance Sheet

Bad debts earlier written–off and later recovered is a profit to the firm and hence they
are transferred to Profit & loss Account.

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