Whether other receivables that cannot be recovered can be written off as bad debts

Whether other receivables that cannot be recovered can be regarded as bad debts should refer to the Notice of the Ministry of Finance and the State Administration of Taxation on the Pre-tax Deduction Policy for Enterprise Asset Losses (Cai Shui [2009] No. 57) to see whether they are consistent.

Whether other receivables that cannot be recovered can be regarded as bad debts shall refer to Article 4 of the Notice of the Ministry of Finance and the State Administration of Taxation on the Pre-tax Deduction Policy for Enterprise Asset Losses (Cai Shui [2009] No. 57), if the receivables and prepaid accounts of an enterprise other than loan claims meet one of the following conditions, the unrecoverable receivables and prepayments recognized after deducting the recoverable amount can be deducted as bad debt losses when calculating the taxable income:

1) The debtor has been declared bankrupt, closed, dissolved, or revoked in accordance with law, or its business license has been cancelled or revoked in accordance with law, and its liquidated assets are insufficient to pay off;

2) The debtor dies, or is declared missing or dead in accordance with law, and his property or estate is insufficient to pay off;

3) The debtor has not paid off the debts for more than 3 years after the due date, and there is conclusive evidence to prove that the debtor is unable to pay off the debts;

4) After reaching a debt restructuring agreement with the debtor or approving the bankruptcy reorganization plan by the court, it cannot be recovered;

5) It cannot be recovered due to force majeure such as natural disasters and wars;

6) Other conditions stipulated by the competent financial and taxation authorities.

Enterprises can apply for bad debt losses if they meet one of the above-mentioned circumstances. Other receivables are sufficient if they meet the above conditions and do not belong to loan claims.

According to Article 2 of the Notice of the State Administration of Taxation on Printing and Distributing the Administrative Measures for the Pre-tax Deduction of Enterprise Asset Losses, the assets referred to in these measures refer to the assets owned or controlled by the enterprise, used for business management activities and related to the acquisition of taxable income, including monetary assets such as cash, bank deposits, receivables and prepayments (including notes receivable), non-monetary assets such as inventory, fixed assets, projects under construction, and productive biological assets, as well as debt investments and equity (equity) investments.

Answer] Article 2 of the Notice of the State Administration of Taxation on Printing and Distributing the Administrative Measures for the Pre-tax Deduction of Enterprise Asset Losses (Guo Shui Fa [2009] No. 88) stipulates that the assets referred to in these Measures refer to the assets owned or controlled by the enterprise and used for business management activities and related to the acquisition of taxable income, including monetary assets such as cash, bank deposits, receivables and prepayments (including notes receivable), and non-monetary assets such as inventory, fixed assets, projects in progress, and productive biological assets. and debt investments and equity (equity) investments.

The above provisions do not specifically refer to accounts receivable and prepayment, but to accounts receivable. This is one of them.

In addition, Article 4 of the Notice of the Ministry of Finance and the State Administration of Taxation on the Pre-tax Deduction Policy for Enterprise Asset Losses (CS [2009] No. 57) stipulates that if the receivables and prepaid accounts of an enterprise other than loan claims meet one of the following conditions, the unrecoverable receivables and prepayments recognized after deducting the recoverable amount can be deducted as bad debt losses when calculating the taxable income

1) The debtor has been declared bankrupt, closed, dissolved, or revoked in accordance with law, or its business license has been cancelled or revoked in accordance with law, and its liquidated assets are insufficient to pay off;

2) The debtor dies, or is declared missing or dead in accordance with law, and his property or estate is insufficient to pay off;

3) The debtor has not paid off the debts for more than 3 years after the due date, and there is conclusive evidence to prove that the debtor is unable to pay off the debts;

4) After reaching a debt restructuring agreement with the debtor or approving the bankruptcy reorganization plan by the court, it cannot be recovered;

5) It cannot be recovered due to force majeure such as natural disasters and wars;

6) Other conditions stipulated by the competent financial and taxation authorities.

Therefore, the receivables that can be deducted as asset losses before tax can be deducted as long as they meet the non-loan claims and meet one of the circumstances mentioned in Article 4 of the above-mentioned Cai Shui [2009] No. 57 document, and other receivables can meet the above conditions and are not loan claims. However, it should be noted that when making deductions, it is necessary to refer to the relevant provisions of the State Administration of Taxation [2009] No. 88 for approval.

Accounts receivable cannot be recovered, recognized as bad debt losses, the entries can be as follows: 1. If bad debt provision is made, the accounting entries debit: bad debt provision credit:

Accounts receivable 2, if there is no provision for bad debts, directly included in the "non-operating expenses" accounting debit: non-operating expenses credit: accounts receivable "bad debt provisions" is an accounting estimate, the balance of the account may be inconsistent with the actual amount of bad debts.

If an enterprise estimates the impairment of accounts receivable according to the standards, it shall make provision for bad debts according to the "estimated impairment amount", and recognize the asset impairment loss at the same time.

Extended information: 1. Accounting entries are also known as "bookkeeping formulas". Abbreviated as "entries".

According to the requirements of the double-entry bookkeeping principle, it lists the corresponding accounts of both parties and their amounts for each economic transaction. Before registering accounts, the preparation of accounting entries through accounting vouchers can clearly reflect the classification of economic operations, which is conducive to ensuring the correctness of account records and facilitating post-event inspection. Each accounting entry mainly consists of the accounting symbol, the relevant account name, summary and amount.

There are two types of accounting entries: simple entries and compound entries. Simple entries are also called "single entries". Refers to an accounting entry that corresponds to the debit of one account and the credit of another.

Compound entries are also known as "multiple entries". It refers to an accounting entry that corresponds to the debit of one account and the credit of several accounts, or the credit of one account to the debit of several accounts.

2. The enterprise should set up the "bad debt provision" accounting account to account for the bad debt provision withdrawn by the enterprise. Enterprises should conduct a comprehensive inspection of the receivables on a regular basis or at least at the end of each year, and make provision for bad debts that may occur in anticipation of the possible occurrence of various receivables, and for the receivables that are not sure to be recovered, provision for bad debts should be made.

3. The method of accounting for bad debt provision shall be determined by the enterprise itself. The enterprise shall make a list of catalogues, specifying the scope of provision for bad debts, the method of withdrawal, the division of aging and the proportion of withdrawal, and shall be approved by the general meeting of shareholders or the board of directors, or the meeting of managers (factory directors) or similar institutions in accordance with the management authority, and shall be reported to the relevant parties for the record in accordance with the provisions of laws and administrative regulations, and shall be placed at the location of the company for investors' reference. Once the method of drawing bad debt provision is determined, it shall not be changed at will.

If there is a need for change, it should still be submitted to the relevant parties for the record after approval in accordance with the above procedures, and explained in the notes to the accounting statements.

If a provision for bad debts is made, accounting entries.

Debit: Provision for bad debts.

Credit: Accounts receivable.

If there is no provision for bad debts, it will be directly included in the accounting of "non-operating expenses".

Borrow: Non-operating expenses.

Credit: Accounts receivable.

According to Article 16 of the Notice of the State Administration of Taxation on Printing and Distributing the Administrative Measures for the Pre-tax Deduction of Enterprise Asset Losses (Guo Shui Fa [2009] No. 88), if the accounts receivable and prepaid of an enterprise meet the conditions for bad debt losses, the following relevant bases shall be provided to apply for pre-tax deduction of bad debt losses:

1) The bankruptcy announcement of the court and the liquidation documents of the bankruptcy liquidation;

2) The court's judgment or ruling in defeat, or a legal document that won the case but was ruled by the Pharaoh's court to suspend the execution of the case;

3) Cancellation or revocation certificates of the industrial and commercial departments;

4) Administrative decision documents of government departments related to revocation and order closure;

5) Proof of death or disappearance from public security and other relevant departments;

6) Conclusive proof that it is more than three years overdue and that it is unable to pay off its debts;

7) the debt restructuring agreement with the debtor and its relevant certificates; (8) Other relevant certificates.

Article 17 Among the receivables that cannot be recovered within the time limit, if the single amount is small and insufficient to make up for the cost of collection, the enterprise shall make a special explanation and determine the part that cannot be recovered as a loss.

Article 18 For receivables that are overdue for more than three years, and the enterprise has a record of collection consultation in accordance with the law, confirming that the debtor has become insolvent, has suffered losses for three consecutive years or has ceased operation for more than three consecutive years, and can determine that there has been no business dealings within three years, it may be determined that there is a loss of implicit behavior.

Collect receivables that have been resold.

It is the accounts receivable that have been confirmed as bad debts and recovered. The role of accounts receivable refers to its role in production and operation. The occurrence of accounts receivable means that part of the company's funds are occupied by customers, and at the same time, there is a cost for the company to hold accounts receivable.

The role of accounts receivable: the role of increasing sales. Business competition is the direct cause of accounts receivable.

When the market is highly competitive, credit sales are an important way to promote sales. Credit sales are actually two transactions offered to customers: the sale of a product and the provision of funds for a certain period of time.

In a seller's market, where products are in short supply, there is no need for companies to use credit sales to hold accounts receivable.

The role of reducing inventories. In most cases, it is advantageous for a business to hold accounts receivable rather than inventory. From a financial point of view, accounts receivable and inventory are current assets.

But the nature of the two is different. Under normal circumstances, accounts receivable is a kind of claim that can be recognized as income, while inventory has relatively high holding costs in addition to occupying a part of the funds, such as storage costs, insurance costs, and management expenses.

Wait a minute. Extended Materials.

1. The significance of accounts receivable management:

1) Improve the market competitiveness of products. Control from the source, give full play to the company's own advantages, constantly develop new products, open up new markets, open up the grade between the products of other similar enterprises, enhance market competitiveness, make their products become best-sellers, change passive to active, so that enterprises can purposefully choose orders, that is, choose customers, in order to reduce the occupation of funds in accounts receivable, fundamentally reduce credit behavior, and minimize the troubles caused by accounts receivable.

2) Establish a monitoring system and early warning mechanism for accounts receivable.

The monitoring system of accounts receivable should include the occurrence of credit sales, account collection, overdue risk early warning and other links. The financial department analyzes and manages accounts receivable, and makes provision for bad debts, which is included in the current expenses. The credit department and the sales department carry out accounts receivable tracking management services, and the credit department and the sales department should cooperate with each other in the work, distinguish their respective responsibilities in the tracking service, and achieve mutual supervision and mutual defeat, improve the accounts receivable rate, and promote the purpose of enterprise sales.

3) Internal audit should be performed.

of the supervisory role. Continuously improve the monitoring system and improve the internal control system; Inspect the implementation of the internal control system, check whether there are abnormal accounts receivable, whether there are major errors, dereliction of duty, internal fraud, deliberate failure to collect accounts, etc., to ensure the quality of accounts receivable.

4) Enterprises can convert accounts receivable into notes receivable.

to reduce risk. Because the notes receivable have strong recourse and can be endorsed, transferred or discounted before maturity, the risk loss can be reduced to a certain extent. Therefore, when the customer cannot repay the payment when due, the enterprise can require the customer to issue an acceptance bill to offset its accounts receivable.