Write off bad debt accounting entries
Even if we squeeze the rich out of existence, the mass of the people must either consume less or produce more.
A bad debt write off is recorded in the accounting records as follows: Actual bad debts during financial year ended 31 December are written off against allowance for doubtful accounts as follows: The seller can charge the amount of an source to the bad debt expense account when it is certain that the invoice will not be paid. The seller can charge the writte of the invoice to the allowance for doubtful accounts. Debit Credit Receivable The credit entry reduces the receivable balance to nil as no amount is expected to be recovered from the receivable. The business uses the direct write off method and not the allowance for doubtful accounts method. Again, it may be necessary to debit the sales taxes payable account if sales taxes were charged on the original invoice. The first approach tends to delay recognition of the bad debt expense.
Ba I exaggerating the mess we are in. I may be, and I should be glad to find myself mistaken. But the point I wish to make is that this question, ong people who are faithful to the Left ideology, cannot be genuinely discussed.