on 31 december 2008 e bain had bad debts totalling 24000 he decided to write off the following debts as bad. T gardiner 120 and 160 bain also discided to create a 5% provision foe ba debts
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
on 31 december 2008 e bain had
bain also discided to create a 5% provision foe ba debts on the remaining debtors
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