Why is provision for doubtful debts created how is it shown in the balance sheet explain?
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ⓗⓔⓨ ⓕⓡⓘⓔⓝⓓ
⊙ Using scale factor
Hope it helps you
⊙ Using scale factor
Hope it helps you
monikadhaka2001:
What do you mean
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The doubtful debts provision is the bad debt estimation of the amount that is calculated as per the receivable amount.
However, this amount is still not calculated due to some major issues.
They are similar to the doubtful accounts allowance that can create issues in the total chart.
In the balance sheet, this amount is as per the historic amount of the bad debt and expenses.
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