Need to make adjusting entry. Bad debts are estimated to be 8% of total [u]net credit sales[u] (do not include rentals). I was taking number from sales journal (Sales Cr) but was told by instructor that was wrong. Which journal should I be looking at or should I look in ledger? Any help would be appreciated. Thanks.

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the income statement/ profit and loss account is debited and the provision appears in the balance sheet on liabilities side under the head of current liabilities and provisions. Or it is deducted from the debtors on the asset side.

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