Stuck with irrecoverable debt question. Please help.Watch
I feel like I’ve mixed the irrecoverable debt number and the customer account number.
Finance and Accountancy Careers Content Blocks
The best way to think about this is to do the reverse of what you originally would have done when recognising the sale (to a certain extent). On the original sale the following would of happened:
Cr Income (net amount)
Dr Customer Account/Trade Debtors
You will just need to do the above but in reverse, except instead of debiting income you should debit bad debt expense.