How to understand the loss of bad debts and the provision for bad debts is debited!

The bad debt provision account is a provision account, at the end of each period, the aging analysis method is used to calculate and accrue bad debt provisions, debit: management expenses credit: bad debt provisions, the balance at the end of the period is greater than the opening balance is according to the difference between the two continue to accrue, if less than the difference should be reversed, debit:

Provision for bad debts Credit: administrative expenses. If the bad debt actually occurs, borrow:

provision for bad debts; Accounts receivable depreciation is called writing off bad debts. When the bad debts that have been written off are recovered again, they are borrowed; Accounts receivable credit: provision for bad debts.

Provision for bad debts: 1. When the provision for bad debts is withdrawn, the "management expenses" account is debited and the "bad debt provision" account is credited. 2. For the receivables that cannot be recovered, when they are approved as bad debt losses, the bad debt provision should be reversed, the "bad debt provision" account should be debited, and the "accounts receivable" or "other receivables" account should be credited.

Understand: It is a credit when it is withdrawn, and it is a debit when a bad debt loss occurs.

The bad debt provision debit is to indicate the bad debts that have been incurred, debit: bad debt provision credit: accounts receivable Its credit represents the provision for bad debts, and China generally adopts the allowance method, so it is accrued and debited first

Asset impairment loss - bad debt loss credit: bad debt provision. This should be easy to understand!

There are two methods of accounting for bad debt provisions, one is the allowance method and the other is the direct transfer method. 1. The allowance method is to make provision for bad debts according to a certain percentage, and when bad debts occur, they are directly reversed from the bad debt provision account

Bad Debt Provision When Bad Debts Are Actually Incurred Loan: Bad Debt Provision Credit: Accounts Receivable 2, Direct Transfer Method Direct Loan When Bad Debts Occur:

Management expenses and other credits: The debit credit of the provision for bad debts of accounts receivable exists under the allowance method, the debit side reflects the actual bad debts, and the credit side reflects the bad debts accrued, which are used as the allowance account for accounts receivable when making the balance sheet.

The provision for bad debts refers to the provision of accounts receivable (including accounts receivable, other receivables of Shizhaoqiao, etc.) of the enterprise, which is the allowance for the Someng account. Enterprises use the allowance method for the accounting of bad debt losses. Under the allowance method, the enterprise should estimate the bad debt loss at the end of each period and set up a "bad debt provision" account.

The provision method refers to the use of a certain method to estimate the loss of bad debts on a regular basis (at least at the end of each year), withdraw the provision for bad debts and transfer them to current expenses; When bad debts actually occur, it is a treatment method to directly write off the provision for bad debts that have been accrued and at the same time resell the corresponding balance of accounts receivable.

1. Bad debt losses:

There is already conclusive evidence that it is indeed irretrievable. For example, if the debtor dies or the debtor goes bankrupt, then this part of the money is indeed unrecoverable, so it is recognized as a "bad debt loss".

2. Provision for bad debts:

Estimate the part that may not be recovered, prepared for pre-extraction.

The company expects that part of the amount will not be recovered in the future, and the provision for bad debts will be made in accordance with the "prudent principle".

Borrow: Asset impairment loss.

Credit: provision for bad debts.

Wait until this loss does happen.

Debit: Provision for bad debts.

Credit: Accounts receivable.

The introduction of bad debt provision can reflect the true value at the point in time of the balance sheet and no longer affect the profit and loss.

For example, if you want to go abroad in the future, the cost of going abroad is estimated to be 500,000, so your parents will save a sum of money for you every year as your going abroad, but it will not affect the normal quality of life of your parents.

Going abroad is a kind of preparation for going abroad in the future, and bad debt provision is a preparation for future losses.

1. What are the regulations for overdue credit cards?

Overdue generally refers to the failure to repay the loan within the specified time, resulting in overdue, and the overdue is also divided into time periods.

1. Overdue for 1-3 days, if it is unintentionally overdue for three days on the last repayment date, it can generally not be regarded as overdue, and it can also be understood as a time service, that is to say, the repayment date can be appropriately delayed, generally extended by one to three natural days, as long as the repayment is made within the time, it will not be overdue.

2.One month after the overdue, the overdue situation has been reported to **, and the credit report will be credited with 1 in the credit card column, indicating that the overdue time is 1-30 days.

3.If the deadline is less than three months, it will be considered that I have maliciously overdue.

4.If it is overdue for more than three months, the situation will be more serious, and the personal credit history will leave a stain, collect penalty interest, and be sued by the bank.

5.If it is overdue for more than two years, it may form a bad debt if it is too long. Bad debts refer to those that have passed the repayment deadline and cannot be recovered temporarily after discussion by the bank, and are in a sluggish state. Bad debts are more serious than overdue, and bad debt records will be retained by credit bureaus for 5 years from the date of repayment.

The accounting entries of bad debt provision generally include the following processes: 1. When the bad debt provision is made at the end of the period according to the situation of accounts receivable, the entries are: debit: asset impairment loss, credit: bad debt provision.

Write-off** back to more mentions) bad debt provisions.

Credit: provision for bad debts, Credit: asset impairment loss.

2. When the enterprise confirms the actual bad debts, it debits: bad debt provision, credits: accounts receivable.

3. If the confirmed bad debts are recovered, the confirmed bad debts shall be transferred back first, and the accounts receivable shall be debited, and the bad debts shall be credited.

4. When the actual payment is recovered, the entries are: debit: bank deposit, credit: accounts receivable.

Enterprises should make provision for bad debts on a regular basis, and for the recognized bad debt losses, the asset impairment loss account should be debited.

An asset impairment loss is a loss caused by the carrying amount of an asset being higher than its recoverable amount.

Main accounting treatment of asset impairment losses:

1. This account accounts for the losses caused by the provision for impairment of various assets in accordance with the criteria of asset impairment.

2. This account shall be accounted for in detail according to the items of asset impairment losses.

3. If an enterprise determines the impairment of assets according to the criteria of asset impairment, it shall debit this account according to the amount that should be written down, and credit "provision for bad debts", "provision for decline in the value of inventory", "provision for impairment of long-term equity investment", "provision for impairment of held-to-maturity investment", "provision for impairment of fixed assets", "provision for impairment of construction in progress", "provision for impairment of engineering materials", "provision for impairment of productive biological assets", "provision for impairment of intangible assets", "provision for impairment of goodwill", "provision for impairment", "provision for impairment of goodwill", "provision for impairment of assets", "provision for impairment of intangible assets", "provision for impairment of goodwill", "provision for impairment of assets", "provision for impairment of intangible assets", "provision for impairment of goodwill", "provision for impairment of assets", "provision for impairment of construction in progress", "provision for impairment of engineering materials", "provision for impairment of productive biological assets", "provision for impairment of intangible assets", "provision for impairment of goodwill", "provision for impairment", "provision for impairment Provision for loan losses", "Debt assets - provision for decline in value", "Provision for loss of goods - provision for decline in price" and other accounts.

4. If the value of the relevant assets is restored after the provision for bad debts, inventory depreciation, impairment of held-to-maturity investments, loan losses, etc., the value of the relevant assets shall be debited and credited to this account within the amount of the original provision for impairment and the amount increased by the recovery.

5. At the end of the period, the balance of this account should be transferred to the "profit of the year" account, and there is no balance in this account after the carryover.

Accrual Entry: Debit: Administrative Expenses, Credit: Provision for Bad Debts. When bad debts actually occur, debit: bad debt provision, credit: accounts receivable. So C should be chosen