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    silhama's Avatar
    silhama Posts: 1, Reputation: 1
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    #1

    Feb 5, 2009, 02:00 PM
    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.
    codyman144's Avatar
    codyman144 Posts: 544, Reputation: 31
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    #2

    Feb 5, 2009, 03:37 PM

    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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