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Provision for Doubtful Debts Double Entry

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Furthermore you can find the Troubleshooting Login Issues section which can answer your unresolved problems and equip you with a lot of relevant. Creating a Provision for doubtful debts for the first time. Bad Debt Provision Accounting Double Entry Bookkeeping The provision for doubtful debts is also known as the provision for bad debts and the allowance for doubtful accountsThe provision for doubtful debts is. . Provision for bad debts is created on the assumption we did from our previous data. Journal Entry Date Detail DR CR 31 Dec Profit and loss ac Provision for doubtful debts account 47500 47500 An extract from the profit and loss account for year ended 31 December 2004 would show. The journal entry for this adjustment will look like this. Here 2 of 500000 will be 10000 so it is assumed that 10000 is irrecoverable. Allowance for doubtful debts on 31 December 2009 was 1500. Nowadays the company needs to extend credit t...
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