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what is the entry for bad debts?
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Answer Posted / shaheen
Bad Debts A/c dr.
To Debtors A/c
(Actual Bad debts recorded)
Provision for doubtful debts A/c. dr
To, Bad bebts A/c.
(Transfering Bad debts to Provision for doubtful debts)
P&L a/c dr.
To, Provision for doubtful debts A/c
(Provision for doubtful debts made on debtors)
Cash A/c Dr.
To, Bad debts recovered a/c
(bad debts recovered and written off)
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