Published On - February 9, 2022
What is the journal entry for receiving an amount of Rs 1,000 from Paresh, which was previously written off as bad debts?
The bad debt expense is entered as a debit to increase the expense, whereas the allowance for doubtful accounts is a credit to increase the contra-asset balance. The Allowance for Doubtful Accounts is a contra-asset account that estimates the future losses incurred from uncollectible accounts receiv...