Debit bad debtsCredit accounts receivable
[Debit] Debt Account xxxx [Credit] Asset/Equipment xxxx
The general ledger journal entry for the uncollectible bad debt would be considered a loss in ledger. Debit the account named Bad Debt Expense for the amount and credit the account Accounts Receivable for the amount.
You would credit the customer account and debit bad debt.
In the Journal Proper
no journal entry required
debit bad debtCredit allowance for bad debt
debit bad debtcredit allowance for bad debt
Bad Debts Recovered Account Dr. To Bad Debts Account
cash at bank dr account opayable cr
The bad debt is recorded against the asset, which is the debtors control account, or account recievable, for example company A is owed $1000 by company B, during the year, company B approaches company A and states that it is going out of business and can only pay them $600, therefore the bad debt is $400 Credit the debtors account of company b with $400 and debit bad debt expense $400
Debit bad debtsCredit accounts receivable