Journal entries for bad debts (How to record bad debts in accounting)

Описание: JOURNAL ENTRIES FOR BAD DEBTS
This video explains how to record bad debt journal entries in accounting. Improve your knowledge on accounting basics by understanding the accounting journals for how to write off bad debt or doubtful debts that cannot be recovered.

A bad debt or an irrecoverable debt means that no payment will be received and therefore the value of the debt will be written off. The following entries will happen to record the bad debt or irrecoverable debt. Number one, an entry is made in the journal. Step two is that the customer's account is credited. And the third and final step is that the bad debt or irrecoverable debts account is debited.

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0:00 Introduction
0:32 Entry 1
1:38 Entry 2
1:51 Entry 3
2:07 Closing

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Our content is to be used as an EDUCATIONAL TOOL that aims to provide a foundation for individuals to learn financial accounting, management accounting and bookkeeping topics as practiced in the United Kingdom. As a result, not all complexities are shown or provided. Examples may include but are not limited to; differences between financial reporting, accounting standards or tax treatments. We are NOT ENGAGED in the providing of accounting, bookkeeping, financial, investment, tax, or other professional services. You should consult with a qualified or professional such as an accountant, business advisor, investment specialist, lawyer, solicitor, etc., with regards to specific facts and situations.

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