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Bad Debt / Provision for doubtful debts

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edited Apr 29, 2020 1:20PM in Receivables & Collections 4 comments

Summary

Bad Debt / Provision for doubtful debts

Content

Hi, All 

How can I Handel  ( Bad Debt /  Provision for doubtful debts ) from Accounts Receivable module to see the Gross, Provision and Net Balance in vendor wise details report

Below is the accounting entry : 

1.       Booking Revenue

Dr. Receivable       1000

Cr        Revenue          1000

2.       Booking Impairment

Dr.       Doubtful debt (Expense)                    500

Cr.       Provision for DD (Liability)              500             

3.       Partial Receipt

Dr.       Bank                500

Cr.       Receivable       500                  Rec 500                       

4.       Further Partial Receipt of 250

Dr.       Bank                250

Cr.       Receivable       250

Dr.       Provision for DD (Liability)               250

Cr.       Doubtful Debit (Expense)                   250       

5.       Bad Debt

Dr. Provision for DD (Liability)                     250

Cr. Receivable                                                 250

Bad Debt Recovered

Dr. Bank                                             250

Cr. Revenue /Other income                250

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