Provision for doubtful debts...

[Desert Sleet]

There is even one more method. As in first case we here also open 2 accounts 1 for provision of doubtful debts and the other for "bad debts" . But the entries are vice verca, we transfer the balance from Provison accounts to Bad Debts account and then by an adjusting entry to P/l a/c.

Each method is acceptable. I have always used this 3rd method.

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