This year, we are simply recognizing the actual account that went bad. (Assume all those others are paying or have paid. Now there are new revenues and new accounts receivable, but right now we’re https://personal-accounting.org/ just trying to isolate this one issue). Fundamentally, bad debt expenditure enables businesses to present their financial status honestly and comprehensively, as with other accounting concepts. Businesses must account for bad debt expenses using one of two methods. The first is the direct write-off method, […]
Bookkeeping