Bad Debts

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Hello Sir

 

I want a clarification on bad debts.

 

I have one debtor whose bill is pending for last 5 months. The bill was raised on May 2019 and still, no payment has been received. 

Should I put him in bad debt list? Because I think the payment will still take time. 

Replies (1)
Provide for doubtful debts.

bad debt dr
cr. provision for doubtful debts
prov for doubtful debts dr.
profit and loss a/c ct
deduct provision from debtors in balance sheet.


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