DateParticularsDebit(RM)Credit(RM) Account Receivable account Sales revenue account XX General Journal.

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Presentation transcript:

DateParticularsDebit(RM)Credit(RM) Account Receivable account Sales revenue account XX General Journal

DateParticularDebit (RM)Credit (RM) Bad debt expense Account receivables account (Being bad debts written off) XX General Journal

DateParticularDebit (RM) Credit(R M) Income Statement Bad Debt expense (being closing of bad debts account to an income statement) XX

2008 (RM) Sales20,000 Less: Expenses(8,000) Bad Debt Expense(1,200) Profit 10,800

DateParticularDebit (RM)Credit (RM) Bad debts expense Allowance for Doubtful debt (being estimate of allowance for doubtful debt) 1,200 General Journal

DateParticularDebit(RM)Credit(RM) Income Statement Bad debts expense (being estimate of doubtful debts) 1,200

Age groupAmount(RM)Estimated bad debt percentage Amount Not yet due60, daysOver 40,000 due daysOver 15,000 due daysOver 10,000 due daysOver 5,000 due15750 Over 180 daysOver 4,000 due20800 Total134,0004,700

DateParticularDebit(RM)Credit(RM) 2008 Jan 4 Allowance for doubtful debt Accounts Receivable (Being bad debts written off) 500