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Hi,
We have outstanding AR (but not AR trade), we managed to sell items from the debtor:
entry was: debit Cash credit AR
This particular AR has provision for bad debts.
Now, there's a proposal to the original entry:
debit cash
credit Allowance for Doubful Accounts.
If we adopt the proposal entry, are we still GAAP-compliant?
Is the proposed entry correct?
Thanks
We have outstanding AR (but not AR trade), we managed to sell items from the debtor:
entry was: debit Cash credit AR
This particular AR has provision for bad debts.
Now, there's a proposal to the original entry:
debit cash
credit Allowance for Doubful Accounts.
If we adopt the proposal entry, are we still GAAP-compliant?
Is the proposed entry correct?
Thanks