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Is allowance for doubtful debt a current liability?
no
Is provision for doubtful debt under current assets?
Yes provision of doubtful debt is part of current assets as accounts receivable is part of current assets and this allowance is for short term period.
Double entry of provision for doubtful debt?
The double entry for recording provision for doubtful debt is: Dr. Doubtful Debts (P&L expense a/c) xxx Cr. Provision for Doubtful debt xxx Once it is certain that the debt has gone bad debt; following entry is made: Dr. Provision for Doubtful debt xxx Cr. Loan / Portfolio xxx
What is the journal entry of provision for bad and doubtful debts?
Provision for bad and doubtful debt is not go to profit and loss account, and it is go to balance sheet.
Is long term debt an operating liability?
NO. But the Current maturities of long-term debt is an operating liability.
Is allowance for doubtful debt a current liability?
no
Is provision for doubtful debt under current assets?
Yes provision of doubtful debt is part of current assets as accounts receivable is part of current assets and this allowance is for short term period.
Double entry of provision for doubtful debt?
The double entry for recording provision for doubtful debt is: Dr. Doubtful Debts (P&L expense a/c) xxx Cr. Provision for Doubtful debt xxx Once it is certain that the debt has gone bad debt; following entry is made: Dr. Provision for Doubtful debt xxx Cr. Loan / Portfolio xxx
Is Provision for income taxes a current asset or liability?
Provisions are defined as liabilities of uncertain timing and amount. 2 types of provisions 1. provision that are in the nature of liabilities ( eg provision for warranty) 2. provisions that are in the nature of asset valuation ( eg provision for doubtful debt)
What is the journal entry of provision for bad and doubtful debts?
Provision for bad and doubtful debt is not go to profit and loss account, and it is go to balance sheet.
Is provision for doubtful debt subtracted from debtors in the balance sheet?
Yes it is.
Dieeerent between provision for doubtful debt and bad debt write off?
Provision is when the bank thinks there is a possibility/ high risk that this may not be repaid. Write off is when they know for sure it will not be e.g if the receiver has gone through the figures and it is clear that the assets left in the company will not repay the debt to the bank
Is long term debt an operating liability?
NO. But the Current maturities of long-term debt is an operating liability.
Is short term debt a current liability?
Yes short term debt is a current liability for business and payable normally within one fiscal year and shown under current liability section of liability side of balance sheet.
Is Bad debts an asset or liability?
Neither, a bad debt becomes an expense on the P&L. the provision created against this is liability
Is provisions for bad debts nominal account?
yeah may be because provision for doubtful debt is a reserve which has been created against the debtors which is an estimated loss and also the journal entry is [Debit] Provision for bad and doubtful debts a/c [Credit] Debtors a/c and here this loss is debited and hence it can be treated as nominal a/c but while preparing trial balance it has a credit balance as its a liability
The current portion of long-term debt should?
be reclassified as a current liability
