aditya khunteta 18 August 2019
Accounting entry for provision for doubtful debts will be;
Bad debts expense/Provision for doubtful debts Dr.
To Allowance for doubtful debts Cr.
It is a liability because the provision represents the amount that you put aside in accounts to cover a future liability. And, also as per the definition, it is a probable obligation arising out of the past events resulting into outflow of future economic benefits.