I have bad debts in my TB and I want to make provision for bad debts. Then what shoud I debit?

Question

I have bad debts in my TB and I want to make provision for bad debts. Then what shoud I debit?

Answer 1

specific debts - debit "bad debt account" (should be in the overheads part of your P+L) and credit the individual accounts.

bad debt provision - debit "bad debt account" credit a suspense account somewhere.  then for each debt you write off  debit the suspense account and credit the individuals account. then at end of year credit the debit balance of the "bad debt account" to 0 it and debit the suspense account.  all things being equal that should also 0.

Answer 2

Bad debts IS a debit on the TB--it's an expense.  If you have bad debts in your AR subledger and want to provide for them, then you debit bad debts (again an expense) and credit allowance for doubtful accounts (a contra to AR)