what is adjust ment of bad depts
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bad debts appear as an item in the trial balance. This means the debts have already been written off. In other words, receivables have already been reduced. ...
bad debts appear as an adjustment outside the trial balance. An adjustment to two figures are now needed.
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Reverse the write-off entry by increasing the accounts receivable account with a debit and decreasing the bad debt expense account with a credit. Record the payment by increasing the cash account with a debit and decreasing the accounts receivable account with a credit.
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