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Uncollectible Accounts Expense.
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∙ 11y ago
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How do you calculate the Bad Debt Expense on the income statement report?
credit the account receivable and debit the bad debt expense.
Is bad debt a current liability or expense?
Bad debt is expense to reduce the amount of accounts receivable not recoverable from customers.
Do you credit allowance for bad debt and debit bad debt expense?
you smell
How do you write an adjusting entry for bad debt expense?
Debit to bad debt expense, credit to allowance for doubtful accounts. The figure would be your yearly estimate.
Why doubtful debt is treated as an asset and Bad debt as an expense?
Doubtful debt is treated as asset because it is reduction in accounts receivable before it happen and at actual bad debt time it is offset against bad debt account. Bad debt is expense because this is the loss which business incurred due to bankruptcy or not receiving money from debtors.
Is bad debt expense a variable cost expense?
According to The Entrepreneur's Guide to Writing Business Plans and Proposals that can be found in google books, bad debt expense is a variable expense because the amount of bad debt depends on the amount of sales.
How do you calculate the Bad Debt Expense on the income statement report?
credit the account receivable and debit the bad debt expense.
Is bad debt a current liability or expense?
Bad debt is expense to reduce the amount of accounts receivable not recoverable from customers.
Do you credit allowance for bad debt and debit bad debt expense?
you smell
Bad debt is an expense?
Yes.
What expense classification would bad debt expense be listed under?
Admin expense
Bad debt on a balance sheet?
No, bad debt is an expense and is reflected on the P&L Statement.
How do you write an adjusting entry for bad debt expense?
Debit to bad debt expense, credit to allowance for doubtful accounts. The figure would be your yearly estimate.
Do bad debt expense has a debit balance?
yes
Why doubtful debt is treated as an asset and Bad debt as an expense?
Doubtful debt is treated as asset because it is reduction in accounts receivable before it happen and at actual bad debt time it is offset against bad debt account. Bad debt is expense because this is the loss which business incurred due to bankruptcy or not receiving money from debtors.
Is bad debt expense account and allowance for uncollectible account is same account?
Bad debt expense account is the actual expense account for bad debts while allowance for doubtful account is the provision for account in case of any bad debts occurs in future.
Where to post bad debt expense on income statement?
It should be posted under operating expense.
