Accountancy, asked by riya7827, 1 year ago

treatment of provision of bad debt in trail balance

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Answered by lucky6180
2
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A business typically estimates the amount of bad debt based on historical experience, and charges this amount to expense with a debit to the bad debt expense account (which appears in the income statement) and a credit to the provision for doubtful debts account (which appears in the balance sheet).


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