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Bad Debts Written Off

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If a doubtful debt is confirmed as bad, it must be written off from the books.

If no provision has previously been made, it is simply a matter of Debiting the Bad Debt Expense account, & Crediting Receivables Control account.

If a provision has been made in the past, the entry is to Dr Provision for Bad Debts account & Cr Receivables Control account.

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Last modified: June 1, 2008