Accounting Basic Knowledge: Bad Debt Provision

1. This account is used to calculate the bad debt reserves of enterprise receivables.

2. Categories of accounts receivable conduct Detailed accounting.

Third, the main accounting treatment of bad debt reserves.

(1) on the balance sheet date, if the receivables are impaired, they shall be debited into the "asset impairment loss" title and credited to this account according to the amount to be written down. If the bad debt provision to be withdrawn in the current period is greater than its book balance, it shall be withdrawn according to the difference; if the bad debt provision to be withdrawn is less than its book balance, the opposite accounting entry shall be made.

(2) as for the receivables that are really unable to be recovered, they shall be reported and approved according to the management authority bad debt Write off receivables, debit this account, and credit "notes receivable", "accounts receivable", "prepayment", "reinsurance accounts receivable", "other receivables", "long-term receivables", etc.

(3) if the receivables that have been confirmed and written off are recovered later, they shall be debited into the subjects of "notes receivable", "accounts receivable", "prepayment", "reinsurance accounts receivable", "other receivables", "long-term receivables" according to the actual amount recovered, and credit them to the undergraduate program; At the same time, debit the "bank deposit" title and credit "notes receivable", "accounts receivable", "prepayment", "reinsurance accounts receivable", "other receivables"“ long-term Accounts receivable "and other subjects.

For the receivables that have been confirmed and written off and then recovered, they can also be debited into the "bank deposit" account and credited to this account according to the actual amount recovered.

4. The ending credit balance of this subject reflects the bad debt reserves that have been withdrawn but not yet written off by the enterprise.