you smell
credit the account receivable and debit the bad debt expense.
Purchases account is personal account in nature and basic rule for personal account is debt what comes in and credit what goes out so purchases is a debit balance as a default balance.
The journal entry to record the adjustment to the AFDA is as follows: Debit Bad Debt Expense Credit AFDA To record a write-off: Debit AFDA Credit Trade A/R To record a recovery of a previously written-off transaction: Debit Trade A/R Credit AFDA Debit Cash Credit Trade A/R
Debit
creditThe opposite of debit is credit. A debit is something owed. A credit is something gained.
you smell
we keyin the credit then we take out the debit.?
YEs but the debt will follow
the debit is your own money from your account and the credit account is borrowed
Banks use Credit because Debit makes it sound like a debt, while credit sounds like YOU get something. If it sounds like a debt, you spend less and the bank loses money. With a credit card, the company is advancing you money on your promise to pay, a debit card means you already have the money in your account.
credit the account receivable and debit the bad debt expense.
[Debit] Debt Account xxxx [Credit] Asset/Equipment xxxx
Purchases account is personal account in nature and basic rule for personal account is debt what comes in and credit what goes out so purchases is a debit balance as a default balance.
Credit card debt doesn't go away easily or fast. It takes much effort and a lot of patience. Patience is the most important. You cannot spend any un-necessary purchases on credit or debit. Things like electronics or appliances should be avoided until debt is little or none at all.
The journal entry to record the adjustment to the AFDA is as follows: Debit Bad Debt Expense Credit AFDA To record a write-off: Debit AFDA Credit Trade A/R To record a recovery of a previously written-off transaction: Debit Trade A/R Credit AFDA Debit Cash Credit Trade A/R
Debit