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    -schumacher-'s Avatar
    -schumacher- Posts: 5, Reputation: 1
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    #1

    Dec 1, 2007, 09:03 AM
    Bad debts
    Hi, I'm doing an accounting question and I can't get my trial balance to balance I think its something to do with how I'm accounting for the bad debts. If I have sales of 4,200,000 made evenly throughout the year and customers are allowed a months credit and halfway during the year one of the customers goes bankrupt owing 15000 but expects to be able pay 5000, the company adjusts its bad debt provision to 5%. Last years provision was 6000. What are the journal entries for this? And how would it appear in the trial balance?
    terryg752's Avatar
    terryg752 Posts: 197, Reputation: 4
    Junior Member
    		  
    #2

    Dec 1, 2007, 03:36 PM
    I am not sure but I think it will be like this:

    Debt written off (Expense) Debit 10000

    Provision for bad debts (Expense) Credit 10000
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