Which of the following statement is not true ........

General Accounting Principles Special Journals

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Which of the following statement is not true:

If del-credere commission is allowed, bad debt will not be recorded in the books of consignor

If del-credere commission is allowed, bad debt will be debited in consignment account

Del-credere commission is allowed by consignor to consignee

Del-credere commission is generally relevant for credit sales

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Explanation:

When the agent is given ordinany commission, he is not responsible for any kind of bad debts that may arise. However, when the consignee or the agent is made responsible for the bad debts, he is entitled to receive a commission over and above ordinay commission called del- credere commission. So, it is not true that if del credere commission is allowed, bad debts will be debited in the consignment account which is prepared in the books of the consignor.