So if we have bad debts written off while calculating the net credit sales are we going to subtract them or.... add them to the receivables
Ask the Tutor ACCA FA
Credit sales
5y ago#1Irrecoverable debts are subtracted from receivables (we do not call them 'bad debts' any more).
The entry is:
Dr Irrecoverable debts expense
Cr Receivables
I do suggest that you watch my free lectures on irrecoverable and doubtful debts. The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.
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