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There is debtors of 22000 and provision for it 1000 while bad debts amounted in to 1500? pass journal entry for this? plz provide answer?
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There is debtors of 22000 and provision for it 1000 while bad debts am...
1. Bad debts a/c dr 1500
to debtors a/c. 1500
2. p&L a/c dr. 1000
to provision for doubtful debts. 1000
p&l account debited with
1.bad debts 1500
2.provisions 1000
Debtors in balance sheet -( 22000-1000-1500)=19500
to debtors a/c. 1500
2. p&L a/c dr. 1000
to provision for doubtful debts. 1000
p&l account debited with
1.bad debts 1500
2.provisions 1000
Debtors in balance sheet -( 22000-1000-1500)=19500
Community Answer
There is debtors of 22000 and provision for it 1000 while bad debts am...
Journal Entry for Bad Debts and Provision
Debtors Account Debit
- Debtors (To record the amount owed by customers) - $22,000
Provision for Bad Debts Account Credit
- Provision for Bad Debts (To account for the estimated amount of bad debts) - $1,000
Bad Debts Account Credit
- Bad Debts (To write off the actual amount of bad debts) - $1,500
Explanation:
Debtors Account Debit: The debtors account is debited to reflect the amount owed by customers, which in this case is $22,000.
Provision for Bad Debts Account Credit: The provision for bad debts account is credited to set aside an estimated amount for potential bad debts, which is $1,000.
Bad Debts Account Credit: The bad debts account is credited to write off the actual amount of bad debts, which is $1,500.
This journal entry ensures that the company's financial statements accurately reflect the impact of bad debts on its accounts receivable and provisions for bad debts. By recording these entries, the company can maintain transparency in its financial reporting and make informed decisions regarding its credit policies and debt collection processes.
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There is debtors of 22000 and provision for it 1000 while bad debts amounted in to 1500? pass journal entry for this? plz provide answer?
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There is debtors of 22000 and provision for it 1000 while bad debts amounted in to 1500? pass journal entry for this? plz provide answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about There is debtors of 22000 and provision for it 1000 while bad debts amounted in to 1500? pass journal entry for this? plz provide answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for There is debtors of 22000 and provision for it 1000 while bad debts amounted in to 1500? pass journal entry for this? plz provide answer?.
There is debtors of 22000 and provision for it 1000 while bad debts amounted in to 1500? pass journal entry for this? plz provide answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about There is debtors of 22000 and provision for it 1000 while bad debts amounted in to 1500? pass journal entry for this? plz provide answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for There is debtors of 22000 and provision for it 1000 while bad debts amounted in to 1500? pass journal entry for this? plz provide answer?.
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