How to strengthen the management of accounts receivable to reduce the risk of bad debts?

Accounting treatment of bad debt provision for accounts receivable:1. Provision for bad debts:

Debit: Credit impairment loss.

Credit: provision for bad debts.

2. Actual bad debt losses:

Debit: Provision for bad debts.

Credit: Accounts receivable.

3. The actual bad debt loss is recovered later

Debit: Accounts receivable.

Credit: provision for bad debts.

At the same time: borrow: bank deposit.

Credit: Accounts receivable.

4. Reversal of bad debt provisions:

Debit: Provision for bad debts.

Credit: Credit impairment loss.

The accounting treatment of provision for bad debts includes the following three situations:

Provision for bad debts at the end of the period.

Bad debts are actually incurred.

Recognized bad debts are recovered.

1) Provision for bad debts.

Provision for bad debts:

Borrow: Asset impairment loss.

Credit: provision for bad debts.

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

Debit: Provision for bad debts.

Credit: Asset impairment loss.

2) Receivables are written off as bad debts (bad debt losses are recognized).

Debit: Provision for bad debts.

Credit: Accounts receivable.

3) Bad debts that have been recognized are recovered.

Reverse a recognized bad debt.

Debit: Accounts receivable.

Credit: provision for bad debts.

Recover the payment. Borrow: Bank deposit.

Credit: Accounts receivable.

Note: For the receivables that have been recognized and resold and later recovered, the "bank deposit" can also be debited and the "bad debt provision" can be credited directly according to the actual amount recovered.

There are two ways to deal with bad debts in accounts receivable, namely the allowance method and the direct transfer method. China's accounting standards for business enterprises stipulate that the impairment of accounts receivable can only be determined by the allowance method, and the direct transfer method cannot be used. On the balance sheet, accounts receivable are reflected on a book balance rather than at book value, which to some extent distorts the financial position at the end of the period.

Therefore, the Accounting Standards for Business Enterprises do not allow the use of the direct resale method.

In January 2011, he took the self-study exam "Analysis of Financial and Statistical Statements (1)" and the real questions and multiple-choice questions (6).

Potato pure sodium aShort ageing.

b.The customer base is fragmented.

c.Credit standards are strict.

d.Longer credit terms.

See the answer explainedCorrect Answer:dAuthoritative analysis of school name teachers:See textbook p31 for the penultimate trouser attack.

1) Establish a reasonable credit system.

1.Determine appropriate credit standards. The credit standard is the minimum standard required for a business to decide to grant credit to a customer.

It is also a basic criterion for enterprises to provide for acceptable risks. In the process of formulating credit standards, the optimal balance should be found through comprehensive analysis.

2.Adopt reasonable credit terms. Credit conditions are a number of conditions for enterprises to give customers deferred payment when selling goods on credit.

Extending the credit term can expand the sales volume, but too long the credit term will also cause the opportunity cost of accounts receivable to increase, and at the same time, increase the risk of bad debt losses. In order to encourage customers to pay early, businesses can attach cash discount conditions while specifying credit terms.

3.Establish the right credit limit. The credit limit is the maximum credit limit that an enterprise gives to a customer according to the customer's ability to repay, and it is actually the maximum amount of risk that an enterprise is willing to assume to a customer.

Determining the right credit limit can effectively prevent losses due to excessive credit sales. In an environment where market conditions and customer credit are constantly changing, companies should make necessary adjustments to their credit limits to keep them within the limits they can afford.

2) Strengthen the internal control of accounts receivable management.

1.Establish a responsibility system for accounts receivable and implement a fault investigation system. The person in charge of enterprise sales should be responsible for enterprise sales, in accordance with the principle of who sells and who is responsible, establish an accounts receivable responsibility system for enterprise sales, implement the responsibility of internal collection, and link the accounts receivable with the performance appraisal of internal business departments.

For the business departments and related personnel that cause overdue accounts receivable, the enterprise shall give warnings in an appropriate manner internally, and the business departments and responsible personnel who cause bad debt losses shall be deducted from their incentive wages in accordance with the internal management system. This measure will pass on the pressure of clearing accounts receivable layer by layer, and promote the accounts receivable as soon as possible.

2.Adopt a flexible and diverse approach to accounts receivable**. The analysis of accounts receivable is to analyze the risk procedures of accounts receivable, and if necessary, take certain measures to reduce the risk degree of accounts receivable.

In the case of work-based starvation, we can use the ABC classification management method in inventory management to classify and analyze accounts receivable. For customers who are overdue for a short time, it is inconvenient to disturb them too much, and it is enough to notify them by ** or letter, so as not to lose this customer; For customers who have not yet expired, they can write a letter to collect in tactful terms; For customers who are overdue for a long time, frequent collection should be carried out; For those who deliberately refuse to return or the above methods are ineffective, they should be submitted to the relevant departments for arbitration or resort to law.

In short, if an enterprise wants to develop, it must expand product sales, and credit sales will inevitably occur, and credit sales are one of the basic methods to expand sales. Therefore, the risk of enterprise accounts receivable and the resulting financial risk always coexist, we must carefully study the control and management of accounts receivable, so as to speed up capital turnover, improve the efficiency of capital utilization, reduce the risk of enterprises, enhance the competitiveness of enterprises, and reduce the risk of accounts receivable, and make the benefits greater.