final accounts

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10 October 2010 please any one tell me the difference between provision for bad debts and reserve for bad debts?

Ajay Mishra

Ajay Mishra (Expert)
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11 October 2010 Hi

Provision for bad debt, reserve for doubtful debts or allowance for doubtful accounts are all the same. It's a contra account created for accounts receivable that is due but not yet paid. If the receivable has been long overdue, it may be written off, depending on company's policies how long before receivables could be written off.
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