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Yes it is. There's a provision for bad debt expense in the income statement and that same amount gets either added to the reserve for doubtful accounts on the balance sheet or reduces the accounts receivable account, on the balance sheet. That depends on whether its a reserve for future write-offs or a write off of a certain customer balance.
Wiki User
∙ 9y ago
Wiki User
∙ 9y agoProvision for doubtful debt is expense which is used to smooth out the profit so when actual bad debt occurs it does not charge to income statement rather that bad debt is charged to provision account.
Wiki User
∙ 9y agobad debts expenses are those amount which is not receivable from debtors and debtors unable to pay and it is company’s loss.
Wiki User
∙ 14y agoAs a selling expense.
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Where does utilities expense appear on the financial statement?
It typically falls on the income statement under general and administrative expenses.
Where does interest expense in the income statement?
Interest expense is shown at debit side of income statement because it is an expense for business.
When the variable costing method is used how does fixed factory overhead appear on the income statement?
fixed expense
When is Bad debt expense removed from the balance sheet?
Bad Debt Expense does not appear on the balance sheet. It is only on the income statement. Allowance for Uncollectible Accounts does appear on the balance sheet.
What is a contra expense?
A reduction of an expense on the income statement.
What is the formula of income statement?
Profit = income - expense
Where do the Maintenance expense go on the financial statement?
Maintence Expense is just like any other expense and will be reported on the income statement and deducted from Gross Income to obtain Net Income...
What accounts can be found in income statement?
Accounts found on an Income Statement are : Cost of Sales, Sales Rev., Selling Expense and Wage Expense
Is interest expense listed on the income statement as an operating expense?
yes
Does an unpaid expense appear on an income statement?
unpaid expenses (a.k.a payables) are recorded on the balance sheet in the current liabilities section.
Why organisations need to recognize depreciation expense in the income statement?
Explain the concept of depreciation and why organisations need to recognise deprecations expense in the Income Statement.
Does supplies expense go on income statement?
yes
