Provision for Doubtful Debts

jewels.pjewels.p Font Of All KnowledgePosts: 1,774Registered
Should you post Prov for Doubtful Debts as an overhead in the P & L Account?

I thought I read somewhere that as it was not definite that these accounts would not be paid you only put it in the B.S (deducted in the Current Assets Debtors) until you were sure it would not be paid.

But just read the exact opposite:confused1:

Comments

  • Paul24Paul24 Experienced Mentor Posts: 578Registered
    The provision = a liability, so it sits in the BS.

    Any adjustments are sent to the P&L
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