debit bad debts
credit notes receivable
Under the allowance method, entry would be: Allowance for Doubtful Accounts (DR) Account Receivable (CR)
Accounts Receivable - DR Bad Debts written off - CR
Debit bad debtsCredit accounts receivable
Cash a/c to debtors a/c
You would reverse the journal entry then record the correct entry.
The general ledger journal entry for the uncollectible bad debt would be considered a loss in ledger. Debit the account named Bad Debt Expense for the amount and credit the account Accounts Receivable for the amount.
debit reserve accountcredit cash / bank
debit owners equitycredit purchases
Closing entries should be journalized and posted. They are entered in the general journal, as well as posted in the general ledger.
Debit accounts receivableCredit sales revenue
debit drawingscredit purchases / goods
c. General Ledger