The formula for calculating bad debt provision, find the formula for calculating bad debt provision

Provision for bad debts due for the current period.

The amount of bad debt provision payable is calculated on the basis of receivables for the current period - the credit balance of the "bad debt provision" account.

If the amount of bad debt provision calculated according to the receivables in the current period is greater than the credit balance of the "bad debt provision" account, the bad debt provision shall be withdrawn according to its difference; If the amount of bad debt provision calculated on the basis of receivables in the current period is less than the credit balance of the "bad debt provision" account, the provision for bad debts shall be offset by the difference; If the amount of bad debt provision payable in the current period is zero, the balance of the "bad debt provision" account should be reversed.

When an enterprise withdraws a provision for bad debts, it debits "asset impairment loss."

Account, which is credited to the Bad Debt Provision account. The provision for bad debts payable in the current period is greater than its book balance.

shall be withdrawn according to the difference; The difference between the amount payable and the book balance is debited to the "Bad Debt Provision" account and credited to the "Asset Impairment Loss" account.

For the receivables that cannot be recovered, the enterprise shall be approved as a bad debt loss.

The provision for bad debts withdrawn is reversed, the Bad Debt Provision account is debited, and the Accounts receivable account is credited.

Other receivables.

and other subjects. If the bad debt loss that has been recognized and resold is recovered later, the accounts of "accounts receivable" and "other receivables" shall be debited and the account of "bad debt provision" shall be credited according to the actual amount recovered; At the same time, the "Bank Deposits" account is debited and the "Accounts Receivable", "Other Receivables" and other accounts are credited.

The "Bad Debt Provision" account is the credit balance at the end of the period, which reflects the bad debt provision that has been withdrawn by the enterprise. Inspect the internal control system for bad debt losses of enterprises.

Emphasis should be placed on the following three areas:

1) Whether a bad debt reserve system has been established. Enterprises that adopt the direct transfer method to deal with bad debt losses should no longer draw bad debt reserves.

2) Whether the provision for bad debts strictly complies with the provisions of the accounting system, and whether the scope of provision and the standard of provision are reasonable and legal.

3) Whether a bad debt approval system has been established. Whether the treatment of bad debt losses has gone through the necessary approval procedures, and whether the approval procedures for bad debts are compliant.

Auditors can check the accounting books of the enterprise.

or ask the relevant accounting personnel to determine which method the audited unit adopts to write off the bad debts; Spot check some bad debt records with large amounts to check whether they have been properly approved, whether the basis for approval is reasonable, whether there is any concealment of false declarations, and whether the amount of accounts receivable written off is consistent with the approved amount. Through the evaluation of the enterprise's bad debt loss control system, the weak links of the enterprise's internal control are pointed out, which are prone to errors and malpractices, so as to determine the focus of the next audit.

Bad debt provision refers to the provision of accounts receivable (including accounts receivable, other receivables, etc.) of an enterprise, which is a provision 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 allowance 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.

Formula: Provision for bad debts to be withdrawn in the current period = amount of provision for bad debts to be withdrawn based on accounts receivable in the current period - credit balance of the "provision for bad debts" account.

There should be formulas in the book, look through them.

There are four formulas for calculating bad debt provisions:

1. The calculation formula for making provision for bad debts using the balance percentage method is as follows:

1.Calculation formula for the first provision for bad debts:

Provision for bad debts accrued in the current period = balance of accounts receivable at the end of the period Percentage of provision for bad debts.

2.The formula for calculating the provision for bad debts in the future:

Provision for bad debts accrued in the current period = amount of provision for bad debts accrued in the current period calculated according to accounts receivable + (or -) debit balance (or credit balance) of the bad debt provision account

2. The formula for calculating the provision for bad debts using the aging analysis method is as follows:

1.Calculation formula for the first provision for bad debts:

Provision for bad debts accrued in the current period = (balance of accounts receivable of each aging group at the end of the period Percentage of provision for bad debts of each aging group).

2.The formula for calculating the provision for bad debts in the future:

Provision for bad debts accrued in the current period = amount of provision for bad debts accrued in the current period calculated according to accounts receivable + (or -) debit balance (or credit balance) of the bad debt provision account

3. The calculation formula for making provision for bad debts using the percentage of sales method is as follows:

Provision for bad debts accrued in the current period = total sales (or sales on credit) in the current period Provision for bad debts ratio.

Further information: Bad debt loss refers to the uncollected accounts receivable of the enterprise, which has been approved for inclusion in the loss. Enterprises that have withdrawn bad debt provisions also reflect in this account that when bad debts occur, they will directly offset bad debt provisions. Enterprises that do not make provision for bad debts shall directly account for bad debts in this account when bad debts occur.

The bad debt loss of the enterprise shall be recognized in accordance with the provisions of the Notice of the Ministry of Finance on Establishing and Improving the Management System of Enterprise Receivables (Cai Qi [2002] No. 513). Bad debt losses and their accounting are an important aspect of accounts receivable accounting. As the name suggests, bad debt loss refers to the loss due to bad debts, so to understand bad debt losses and their accounting, we must first start with what bad debts are.

There are four types of accrual methods for bad debt provisions: the balance percentage method, the aging analysis method, the sales percentage method, and the individual recognition method.

1. The calculation formula for making provision for bad debts using the balance percentage method is as follows:

1.Calculation formula for the first provision for bad debts:

Provision for bad debts accrued in the current period = balance of accounts receivable at the end of the period Percentage of provision for bad debts.

2.The formula for calculating the provision for bad debts in the future:

Provision for bad debts accrued in the current period = amount of provision for bad debts accrued in the current period calculated according to accounts receivable + (or -) debit balance (or credit balance) of the bad debt provision account

2. The formula for calculating the provision for bad debts using the aging analysis method is as follows:

1.Calculation formula for the first provision for bad debts:

Provision for bad debts accrued in the current period = (balance of accounts receivable of each aging group at the end of the period Percentage of provision for bad debts of each aging group).

2.The formula for calculating the provision for bad debts in the future:

Provision for bad debts accrued in the current period = amount of provision for bad debts accrued in the current period calculated according to accounts receivable + (or -) debit balance (or credit balance) of the bad debt provision account

3. The calculation formula for making provision for bad debts using the percentage of sales method is as follows:

Provision for bad debts accrued in the current period = total sales (or sales on credit) in the current period Provision for bad debts ratio.

1. Borrow: Accounts receivable - enterprise B.

Credit: 50% of the main business income

Credit: Tax Payable - VAT Payable (Output Tax).

Borrow: cost of main business 28

Credit: Inventory Goods 28

2 debit: provision for bad debts 20

Credit: Accounts receivable 20

3 Borrow: 30 bank deposits

Credit: Accounts Receivable - B Enterprise 30

4. Test result 1? 0, I can't see clearly, I can't do it.

The balance of accounts receivable (debit) at the beginning of the period = 1000 + 20 = 10.2 million yuan, and the balance of bad debt provision (credit) at the beginning of the period = 1020 * 10% = 1.02 million yuan.

1. This month, the credit sales of goods were 1.5 million yuan, and the accounts receivable (debit) increased by 1.5 million yuan;

2. The loss of bad debts is 80,000 yuan, the provision for bad debts (debit) increases by 80,000 yuan, and the accounts receivable and other receivables (credit) increase by 80,000 yuan.

3. Recover 20,000 yuan of travel expenses from employees in advance, and increase the closing balance of receivables by 20,000 yuan (credit) = 1020 + 150-8-2 = 11.6 million yuan, so the balance of bad debt provision at the end of the period (credit) = 1160 * 10% = 1.16 million yuan.

Provision for bad debts that should be accrued at the end of the month = 116-102 + 8 = 220,000 yuan.

The provision for bad debts should be made at the end of the year. Now in February, mid-year, there is no provision for "bad debts".

--Write the entries for each step below, but these entries are not useful for this question.

1. A batch of goods sold on credit, the price is 12 million yuan, and the value-added tax is 2.04 million yuan

The main business income is 12 million yuan.

2. Accounts receivable of 5 million yuan were recovered in the month.

Borrow: Bank deposit of 5 million yuan.

Credit: Accounts receivable of 5 million yuan.

3. The bad debts confirmed in the early stage were re-recovered 200,000 yuan in the same month.

Debit: accounts receivable 200,000 yuan.

Credit: Provision for bad debts of 200,000 yuan.

At the same time: borrow: bank deposit of 200,000 yuan.

Credit: Accounts receivable 200,000 yuan.

Provision for bad debts. It refers to the accounts receivable (including accounts receivable and other receivables) of the enterprise.

etc.), which is an allowance account. Losses on bad debts.

The allowance method is used. 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 allowance method refers to the use of a certain method to estimate the loss of bad debts on a period (at least at the end of each year), extract the bad debt provision and transfer it to the current expenses; When bad debts actually occur, it is a method of directly writing off the provision for bad debts that have been accrued and reselling the corresponding balance of accounts receivable.

Formula: Provision for bad debts to be withdrawn in the current period = amount of provision for bad debts to be withdrawn based on accounts receivable in the current period - credit balance of the "provision for bad debts" account.

The official website shall prevail.

1.Provision for bad debts payable in the current period = amount of provision for bad debts in the current period calculated on the basis of accounts receivable - credit balance of the "provision for bad debts" account.

2.If the amount of bad debt provision receivable in the current period is greater than the credit balance of the "bad debt provision" account, the bad debt provision shall be made according to the difference; If the amount of bad debt provision for the current period accrued by accounts receivable is less than the credit balance of the "bad debt provision" account, the bad debt provision accrued shall be offset by the difference; If the amount of bad debt provision according to the current accounts receivable is zero, the balance of the "bad debt provision" account will be reversed.

Extended Materials. 1.Bad debt provision refers to the provision for bad debts on the accounts receivable of an enterprise.

Enterprises use the allowance method to calculate bad debt losses. Under the allowance method, the enterprise estimates the bad debt loss at the end of each period and sets 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, withdraw the provision for bad debts, and transfer them to the current expenses; When bad debts actually occur, it is a treatment method to directly write off the bad debt provision and at the same time reduce the corresponding accounts receivable balance.

2.Enterprises should set up "accounting" for bad debt provisions to collect bad debt provisions. Prepare accounts receivable in advance, and make provision for bad debts, which is determined by the enterprise itself.

The enterprise should have a list of items for reference, clear the scope of program preparation, time division and development ratio, by the general meeting of shareholders or departmental meetings, managers or similar institutions. In accordance with the provisions of the management authority, the law and administrative regulations, it shall be reported to the relevant parties for the record, and the equipment of the sponsor company shall be prepared for the decision-maker. After the change declaration is approved in accordance with the above procedures and stated in the notes to the accounting statements, it still needs to be submitted to the relevant parties.

When determining the time for the withdrawal of bad debts, the enterprise shall determine the withdrawal time according to the relevant information such as the enterprise's **, actual financial situation, and the number of units of future production capacity.

3.Auditors should use the review method and the review method to check the year-end balance of the "accounts receivable" account and the relevant sub-account amount of the "management expenses" account, and check whether the scope and standards of the accounts receivable of the enterprise meet the requirements. whether the provision for bad debts is correct and whether the profit or loss for the current period is adjusted by reducing or increasing the provision for bad debts; Check the "bad debt provision", "management expenses" and corresponding accounts in a timely manner, and check whether the enterprise adopts the direct write-off method and the allowance method to adjust the current profit and loss; Check the debit amount and related original vouchers of the "Bad Debt Provision" account, and check whether there is any artificial over-reversal or under-reversal of bad debt provision; Review the credit amount and related original vouchers of the "Bad Debt Provision" account or the corresponding account, and verify whether the enterprise has included the bad debt losses recovered and written off into other accounts, such as the "Accounts Payable" account of the "Bad Debt Provision" account of the Bank.

Bad debt provision is a contra account, which is mainly used to account for the bad debt loss of an enterprise. What are the main methods for making provision for bad debts?

The three calculation methods of bad debt provision are the balance percentage method, the percentage of sales method and the aging analysis method. If the receivables are impaired, the amount written down should be recognized as an impairment loss, and provision for bad debts should be made at the same time.

Balance percentage method.

This is a method of estimating bad debt losses as a percentage of the balance of accounts receivable at the end of the period. The percentage of bad debts is determined by the enterprise itself based on past information or experience.

The balance percentage method is to accrue bad debts according to a certain proportion of the closing balance of accounts receivable, other receivables and long-term receivables.

Provision for bad debts accrued in the current period = balance of accounts receivable at the end of the period Percentage of provision for bad debts.

Percentage of sales method.

This is a method of estimating bad debt losses based on a certain percentage of a business's gross sales. The percentage is determined according to the relationship between the actual bad debts and the total sales of the enterprise in the past, combined with the changes in production, operation and sales policies. In practice, companies can also estimate bad debt losses based on the percentage of sales on credit.

Provision for bad debts accrued in the current period = total sales (or sales on credit) in the current period Provision for bad debts ratio.

Aging method.

The aging analysis method is to calculate the aging accrued bad debts of the aging period according to the proportion of bad debts accrued in each period of accounts receivable, other receivables and long-term receivables at the end of the accounting period, and then subtract the accrued amount of the previous year, and the difference is the bad debts accrued in the current year.

Provision for bad debts accrued in the current period = (balance of accounts receivable of each aging group at the end of the period Percentage of provision for bad debts of each aging group).

Provision entries for bad debts.

Accounting entries for provision for bad debts.

Debit: Credit impairment loss.

Credit: provision for bad debts.

For the receivables that cannot be recovered, they shall be treated as bad debts after being approved by the management authority, and the receivables shall be resold and borrowed: bad debt provision.

Credit: accounts receivable, etc.

When the receivables that have been recognized as bad debt losses and resold are later recovered in whole or in part, they are debited: accounts receivable, etc.

Credit: provision for bad debts.

Meantime. Borrow: bank deposits, etc.

Credit: accounts receivable, etc.