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    burnabyryan's Avatar
    burnabyryan Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Oct 8, 2008, 07:10 PM
    Closing entry for bad debt expense
    HI All,

    I am confused on closing entries completely. I am clearly totally new to accounting so here is my question.

    I have a bad debt expense of 2% of 100K. I have to record this in my general ledger so I do the following

    Bad debt expense Debit - 2,000
    Allowance for Doubtful Accounts Credit - 2,000

    Now I have to make the closing entry. I assume it is like this? I am not sure any help very much appreciated.

    Bad Debt Expense Credit - 2,000

    Is that correct?

    Thanks you
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Oct 18, 2008, 03:08 PM

    The closing Debit enty will be to the Income Summary Account.
    markdeson's Avatar
    markdeson Posts: 2, Reputation: 1
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    #3

    Sep 22, 2011, 05:30 PM
    The closing entry there is just like this:
    Income summary 2000-dr.
    Bad debts expense 2000-cr.
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