Telegram Group & Telegram Channel
If during revaluation
A debt of $400 is ESTIMATED TO BE uncollectible

1) to record an increase in AFDD, and recognise as expense for the period
Dr Bad debts
Cr AFDD

Note: no change to trade receivables as the total collectible amount remains unchanged

2) since bad debts account is already CLOSED

The entry is revised :
Dr Revaluation
Cr AFDD
注意不是 TRADE RECEIVABLES



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If during revaluation
A debt of $400 is ESTIMATED TO BE uncollectible

1) to record an increase in AFDD, and recognise as expense for the period
Dr Bad debts
Cr AFDD

Note: no change to trade receivables as the total collectible amount remains unchanged

2) since bad debts account is already CLOSED

The entry is revised :
Dr Revaluation
Cr AFDD
注意不是 TRADE RECEIVABLES

BY BAFS你問我答channel


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