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+--- Thread: provision for bad debts (/thread-provision-for-bad-debts)
provision for bad debts - kaal - 06-08-2005
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hi i wanna ask u people that how the provision of bad debts is made in accounting?
- maani - 06-09-2005
Hi,
Provision for bad debts is that percentage of debtors which is likely to be irrecoverable...the percentage is estimated by having in view the previous years debtors records...
Ace
- Ice_Blue - 06-10-2005
Dr. Bad Debt Expense
Cr. Provision for Bad Debts
Provision for Bad Debts is a Contra-asset a/c
Bad Debt Expense closes in the P/L a/c
Ice Blue