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-   -   Allowance for doubtful accounts (https://www.askmehelpdesk.com/showthread.php?t=313550)

  • Feb 5, 2009, 02:00 PM
    silhama
    Allowance for doubtful accounts
    Is is ever appropriate or acceptable to debit Revenue when recording an allowance for doubtful accounts? Or do you have to debit Bad Debt Expense? FAS-5 doesn't seem to address this from what I can tell.
  • Feb 5, 2009, 03:37 PM
    codyman144

    Your right FAS 5 doesn't address this. However it is common practice not to debt revenue but as you mentioned some kind of Bad Debt Expense account.

    That might be in a later FAS but don't know it off the top of my head. I just know for sure you don't debt revenue but you do debt expense.

    If you think long enough about it I am sure you will come up with several reasons it isn't right to debt directly revenue.

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