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How to Determine Bad Debts Expense?
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Answer / vinotha.v
profit & loss A/c , debit side appear the bad debits
expenses.
the bad debits expenses calculated sundry debitors
Example:sundry debitors Rs. 10000/-
Bad debits @ 5%
Profit & Loss A/C debit side appear Rs.500.
10000*5%
Balance sheet assets side appear entry:
sundry debitors 10000
less: bad debits 500
_______
RS. 9500
______
| Is This Answer Correct ? | 4 Yes | 1 No |
Answer / sonia
Bad debts Expenses are those expenses which are not
recovered by the debtors.Either the customer become
insolvent or refuse to pay payment...shown on dr side of
profit& loss account.
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / shailendra kumar
bad-debt expense, is that expense incurred in the
unsuccessful attempt to realize payment of a Account
Receivable. Uncollectible account expenses must be incurred
in the time period in which the related sales are made,
e.g. an AR that originates from a credit sale in January
and is determined to be uncollectible in June represents an
expense in January
| Is This Answer Correct ? | 1 Yes | 1 No |
Answer / krishna kant bokaro
Bad debts is noncollectable amount in a given period by the organisation or company.Customer can not unable to fulfill its obligation to pay an outstanding debt, due to financial or other problem. Debts expense is always show in debit side in profit and loss account and reduce from sundry debtors.
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / nagesh
It will be simpler to treat the that amount as bad debt
expense when the company is certain that the customers are
not able to pay the amount owed?
That way, you record the exact amount of bad debt when it
happens, and you do not have to estimate an amount of
doubtful accounts and risk being correct.
| Is This Answer Correct ? | 2 Yes | 3 No |
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