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Bad debts DR
Allowance for doubtful debt CR
Some accounting practioners may use provison for doubtful debts instead of allowance for doubtful debts.
Example of bad debts, suppose a customer was unable to pay their debts totalling $150. This will be the journal entry for the transaction:
Bad debts 150
Allowance for doubtful debts 150
What else can I help you with?
How do you prepare the adjusting journal entry to record bad debt expense?
The bad debt is recorded against the asset, which is the debtors control account, or account recievable, for example company A is owed $1000 by company B, during the year, company B approaches company A and states that it is going out of business and can only pay them $600, therefore the bad debt is $400 Credit the debtors account of company b with $400 and debit bad debt expense $400
What would the journal entry be if a company incurred an expense?
There may be more than one way to record an expense. The easiest journal to think about is when you've used cash to pay for the expense. In that case, you would debit an expense account and credit cash. But, if you've received the benefit of an expense but have not yet paid for it the debit would still be the expense account but the credit would be a liability account. Of course, there are times when cash flows but no expense is recognized such as investments in property, plant and equipment. After that expenditure is made you would recognize periodic expenses in the form of depreciation. That would be a debit to depreciation expense and a credit to accumulated depreciation.
How do you record a journal entry in QuickBooks?
To record a journal entry in QuickBooks, go to the Company menu, select Make General Journal Entries, enter the date and journal entry number, choose the accounts to debit and credit, input the amounts, and save the entry.
What is the history of accounting for merchandising business?
In merchandising business, sales and purchases are the most common transactions. Special journals are used to record the transactions as they are very frequent and to make the accounting process simpler. The types of special journals used are Revenue Journals: sales journal and cash receipt journal. Expense Journal: purchase journal and cash payment journal. Earlier the accounts were hand written in the relevant books of accounts and tallied every month or half yearly or annually. However the same accounts are computerized for easier reference in the modern age.
What is the General journal entry to record investment?
debit investment accountcredit cash / bank
How do you prepare journal entries to record income tax expense and the effects of net operating loss carrybacks?
no one knows
Is tax a asset or expense and how do I record it in the General journal or balance sheet-?
Tax is an expense, you do not record it in a balance sheet but on the general journal.
Failure to prepare an adjusting entry at the end of the period to record an accrued expense would cause?
Would cause the Trial balance not to balance
Is tax a asset or expense and how do I record it in the General journal or balance sheet?
Tax should be recorded in the general journal because it is an expense.
The adjusting entry to record supplies expense accomplishes which of the following?
Decreases an asset and increases an expense.
How do you record a journal entry to reverse the expense booked?
debit cash / bank / accounts payablecredit expense account
What is the journal entry to record accrued interest expense?
Debit Accrued Interest Expense Credit Accrued Interest Payable
Why is it important for a company to make adjusting journal entries?
It is important to record adjusting entries as if it is not done then there is no accurate financial statements will be available.
Adjusting journal entry to record bad debt?
Debit bad debtsCredit accounts receivable
The journal entry to record depreciation expense consists of a credit to Accumulated Depreciation and a debit to the asset being depreciated?
Debit is to depreciation expense.
What are the accounting journal entries to record an overcharged cost that was posted to an expense purchase to Accounts Payable and was paid at a later date?
general journal
How do you record adjusting journal entry for credit sale?
Type your answer here... party a/c Dr. to sales
