Accounting Treatment Of Other Receivable Items

Accounting For Bad Debt Losses

Bad debts refer to accounts receivable that enterprises can not recover. Losses arising from bad debts are called bad debt losses. There are two ways to calculate bad debt loss, that is, direct selling method and reserve method. (1) the direct selling method of direct selling refers to the confirmation of bad debt losses, the period cost and the cancellation of the accounts receivable when the actual bad debts happen. Borrowing: management expenses: accounts receivable. If the account receivable