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what is the entry for bad debts?

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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