Journal


This query is : Resolved 

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This discussion clarifies the journal entry for bad debts. Bad debts are charged under the Profit & Loss Account as an indirect expense. The typical journal entry is to debit the Bad Debt account and credit the Customer's account. This entry effectively writes off the unrecoverable debt.

06 June 2020 Kindly advise bad debts journal entry and its under which head

Give me in examples to understand

07 June 2020 BAD DEBT CHARGED UNDER PROFIT & LOSS ACCOUNT UNDER INDIRECT EXPENSE.
BAD DEBT AC
TO CUSTOMER AC

07 June 2020 kindly advise how to write off the entry for bad debts and comes in which head ?

09 June 2020 ALREADY ANSWERED ABOVE. BAD DEBT SHOULD BE TRANSF. TO P&L A/C


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