I see this is a very popular question- so I've expanded the response! First, it isn't a tax question...as this account cannot exist for taxes...which does not allow an allowance for bad debt...just the actual incurred. (An allowance account is an estimate of anticipated uncollectables)
For general accounting purposes, the account could have either a credit or debit balance at any given time. Analyse the position of the Co and determine what a reasonable reserve , if any, should be (using an historical unreceivable against the recorded sales is one method). Adjust the account to that amount, the offset to this balance sheet ac is on the income statement. All amounts determined uncollectible should be charged to this BS account, against this reserve. Hence whats happening...every month/period/so often, the financials charge an amount against the Income Statement, (lowering income), for anticipated uncollectibles (or bad debt). That amount is posted to the Balance Sheet. Future actually written off (found bad debts), are charged there, reducing the reserve. That has no income effect, the effect being taken when the original reserve was established. (For tax, the accrual/reserve is unacceptable (everyone would over reserve - lower income - pay less tax), but the actual charge off is, essentially going to the income tax income statement at that time). The anlaysis of what is required is crucial... for example maybe because an expected bad debt customer financial situation (or customer relations) improves and he pays, new collection efforts are successful, etc., it is possible (not even uncommon) that a reserve is more than needed. When that happens the books reduce the reserve and take it back to income.
yes in the credit side of the balace sheet as By Assets Sales
A trial balance is a list of all the nominal ledger (general ledger) accounts contained in the ledger of a business. This list will contain the name of the nominal ledger account and the value of that nominal ledger account. The value of the nominal ledger will hold either a debit balance value or a credit value balance. The debit balance values will be listed in the debit column of the trial balance and the credit value balance will be listed in the credit column. The profit and loss statement and balance sheet and other financial reports can then be produced using the ledger accounts listed on the trial balance...cj pulgar
balace
well i think for balace
scale and balace
Sophie Balace has written: 'Entre paradis et enfer' -- subject(s): Medieval Art, Death, Exhibitions, Themes, motives, Death in art, History
all animals balace out the food chain or a specific ecosystem
why
a balanced force is when the number of the forces are equal (another word for it) balanced
It is for more balace when jumping. (ex. rebounding, dunking)
yes in the credit side of the balace sheet as By Assets Sales
Marco Koskas has written: 'Avoue d'abord' 'La position tango' 'Balace Bounel'
Following are items in balance sheet:1 - Assets2 - liabilities3 - Owner's equity or capital
Becuse you put more waight on one side of tire; every gram counts; tire needs to be balace.