Farouk sells goods on credit. Khalid, who is a credit customer, gave a cheque that the bank later dishonoured. How should Farouk record this?
- Aaccount to be debited: bank; account to be credited: Khalid
- Baccount to be debited: irrecoverable debts; account to be credited: Khalid
- Caccount to be debited: Khalid; account to be credited: bank
- Daccount to be debited: Khalid; account to be credited: irrecoverable debts