Debit bad debts
Credit accounts receivable
You would credit the customer account and debit bad debt.
debit cashcredit accounts receivable
[Debit] cash / bank [credit] accounts receivable
[Debit] cash / bank [credit] accounts receivable
(Debit) Cash xxxx (Credit) Accounts receivable xxxx
You would credit the customer account and debit bad debt.
debit cashcredit accounts receivable
[Debit] cash / bank [credit] accounts receivable
Debit cash / bankCredit accounts receivable
[Debit] cash / bank [credit] accounts receivable
(Debit) Cash xxxx (Credit) Accounts receivable xxxx
Debit accounts receivableCredit services revenue
Journal entry for opening a bank account
In order to credit a customer in the account, a credit note must be issued. After that is done, a journal entry can be made to indicate the credit.
Outstanding income a/c CR to Customer a/c Dr
What needs to happen when recording a Journal Entry for a sale on account
When recording a journal entry for a sales account, ensure that the sales are strictly done on credit terms.