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How do you prepare an adjusting journal entry to record bad debts expense?
Wiki User
∙ 12y ago
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
Wiki User
∙ 12y ago
Wiki User
∙ 9y agodebit bad debt expense
credit accounts receivable
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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.
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 did fas 123R change fas 123?
Under FAS 123, companies may continue to record options using the APB 25 intrinsic value method; But, they were required to disclosed in their footnotes what would have been the full expense effect of the options, calculated using the fair value method. Under FAS 123R, companies may no longer use the intrinsic value method. The end result is that companies that issue stock options will now have to record an expense for what they had previously only had to disclose. They are also required to record expense for any outstanding unvested options. In addition, FAS 123R no longer permits companies to account for forfeitures as they occur. Companies will be required to estimate their forfeiture rate and record expense net of estimated forfeitures. In other words, FAS 123 required disclosure, while FAS 123R required recognition.
How do you prepare journal entries to record income tax expense and the effects of net operating loss carrybacks?
no one knows
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 is an expense, you do not record it in a balance sheet but on the general journal.
The adjusting entry to record supplies expense accomplishes which of the following?
Decreases an asset and increases an expense.
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.
How do you record a journal entry to reverse the expense booked?
debit cash / bank / accounts payablecredit expense account
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.
What is the journal entry to record accrued interest expense?
Debit Accrued Interest Expense Credit Accrued Interest Payable
Adjusting journal entry to record bad debt?
Debit bad debtsCredit accounts receivable
How do you record adjusting journal entry for credit sale?
Type your answer here... party a/c Dr. to sales
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
