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How to do the adjustment entry of furter bad debts and provision for bad debts |
Answer» Less balance sheet to debtor and add p and l account.<br>Minus further bad debts from debtors and write it to the debit side of profit and loss account. For provision for doubtful debts minus it from debtors and write it to the debit side of profit and loss account.And if provision for bad debts appear in trial balance write it to the credit side of profit and loss account | |