Debts that a firm is unable to recover are debited to bad debts account and credited to
Suppliers account
Sales account
Customers account
Cash account
Correct answer is A
The entry to write off a bad debt account affects only balance sheet accounts: a debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable.
Accounts receivable is money owed to a company by its debtors.