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maw [93]
3 years ago
7

How is a provision for bad debt recognized in the income statement and balance sheet

Business
1 answer:
prohojiy [21]3 years ago
6 0

Answer: The provision for doubtful debts is an accounts receivable contra account, so it should always have a credit balance, and is listed in the balance sheet directly below the accounts receivable line item. The two line items can be combined for reporting purposes to arrive at a net receivables figure

HOPE THIS HELPS

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