Journal entries for bad debts

3 Apr

Journal entries for bad debts
A bad debt or an irrecoverable debt means that no payment will be received and therefore the value of the debt will be written off. The following entries will happen to record the bad debt or irrecoverable debt. Number one, an entry is made in the journal. Step two is that the customer's account is credited. And the third and final step is that the bad debt or irrecoverable debts account is debited.