06 October 2013
First of pass the journal entry of actual bad debts . Entry for recording actual bad debt which did not record in books of business 1. Bad debts account Dr. xxxxx To Sundry Debtors Account xxxxxx Entry for transferring bad debts to provision for bad debts Account 2. Provision for bad debts account Dr. xxxxxx To Bad Debts account xxxxx Transfer of provision for bad debts account to profit and loss account 3. Profit and loss account Dr. xxxxxx To Provision for bad debts account xxxxx
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