China Tackles Excessive Local Gov't Debt CRIENGLISH.com
Liu Jiayi, China's top auditor, said last month in a report to the National People's Congress that local governments struggled with an overall debt of 10.7 trillion yuan ($1.65 trillion) by the end of 2010, accounting for more than one-quarter of China's GDP in 2010, which stood at 39.8 trillion yuan. He hinted at the risk of a string of defaults.
The stunning revelation poses bad news for Beijing, but the Chinese government is actually handling the matter in a proper way by continuing with its reform and opening-up policies. Beijing made the correct decision to disclose the fact that local governments are amassing unsustainable debt as proof of greater transparency.
If China intended to play the public relations' game, a statement would follow this pattern: "As of the end of 2010, local governments had an overall debt of 10.7 trillion yuan, but бн" A Chinese government official could have filled in the blank by either painting an overly-optimistic picture
Receivables Example (Allowance Method & Bad Debt Expense)
This is an exercise that is intended to walk you through an receivables exercise where you have to estimate bad debt expense under the allowance ...
Accounting - Bad Debt Expense vs Allowance for Doubtful Accounts?
I am unclear as to what the true definition and meaning of Bad Debt Expense and Allowance for Doubtful Accounts.
For example, an adjustment of $15 is recorded for Bad Debt
This would debit Bad Debt Expense by $15
This would credit Allowance for Doubtful Accounts by $15
Correct?
Naturally, Bad Debt Expense is treated as an Expense but what is Allowance for Doubtful Accounts? Is this considered a liablity?
The allowance account is a contra asset account which is deducted from accounts receivable on the balance sheet to arrive at net receivables. Under the conservatism principle of accounting, receivables should be reported at the amount most likely to be collected rather than the full amount. Before financial statements are prepared an estimate is made of the amount of receivables that will become bad. That way the bad debts expense is recorded in the year when the receivables were earned, and receivables are reported at their estimated net realizable value.
Allowance for Doubtful Debt is considered as a current liability!
but normally at Balance Sheet we will directly use the Account Receivable minus the Amount of Allowance for Doubtful Debt.
help with accounting/bad debt expense?
THe Allowance for Bad Debts is contra to which of the following accounts?
A. accounts receivable
b. bad debt expense
c. cash
d. Sales
Which one is correct?
http://www.google.com/search?hl=en&q=Allowance+for+Bad+Debts+is+contra+to+&btnG=Google+Search
And you will find your answer
The allowance for bad debts is also know as the "allowance for doubtful accounts". Allowance for doubtful accounts is a company's estimate of how many customers are going to default on their bills. That is why it is a contra to accounts receivable.
Intermediate Accounting - Bad Debt Expense Question?
Q:
The following information is available for Reagan Company:
Allowance for doubtful accounts at December 31, 2006:
$ 8,000
Credit sales during 2007: $400,000
Accounts receivable deemed worthless and written off during 2007:$9,000
As a result of a review and aging of accounts receivable in early January 2008, however, it has been determined that an allowance for doubtful accounts of $5,500 is needed at December 31, 2007. What amount should Reagan record as "bad debt expense" for the year ended December 31, 2007?
a) $4,500
b) $5,500
c) $6,500
d) $13,500
I solved it and came up with answer a) 4500.
Is this correct, why or why not?
Sorry, you are not correct. The correct answer is C - 6,500
Starting allowance 8,000
less Charge Offs (9,000)
Plus Bad Debt Expense 4,500
-----------------------------------------------------------------
Allowance at 12/31/07 3,500
Incorrect as it should equal 5,500
Starting allowance 8,000
less Charge Offs (9,000)
Plus Bad Debt Expense 6,500
-----------------------------------------------------------------
Allowance at 12/31/07 5,500
correct
Accounting question: What is bad debt reinstate ?
I know what allowance for bad debt, or write offs are, and I know that if you're lucky enough to get payment on debt you already wrote off it is called "Bad debt recovery," but what is bad debt reinstate ?
Same thing as recovery. If you have written off the bad debt, you reinstate it if you ever get payment. I actually don't use the term bad debt recovery, only bad debt reinstate when posting.
How is Bad debt accounted in the Balance Sheet?
My understanding is that bad debt is charged as an expense in the income statement and also remove the amount of bad debt from the asset side of the balance sheet.
if net assets = equity, then if asset is lower due to bad debt, then equity must reduce to balance the balance sheet. But, what is deducted in the equity side?
Thanks
My understanding is that bad debt is charged as an expense in the income statement and also remove the amount of bad debt from the asset side of the balance sheet.
- Your understanding is correct.
what is deducted in the equity side?
When bad debt is charged as an expense in the income statement, that will ultimately go to reduce equity via reduced profit which leads to reduced retained earnings.
How do you write off a bad debt in a manual accounting system?
When entering into the general ledger where does the double entry get made?
I think you'll find that under A-IFRS you should not be periodically creating a non-specific provision for doubtful debts. Consequently, the entry is:
DR Bad Debts Expense
CR Accounts Receivable
You will also need to account for the GST not collected by reversing the initial GST entry.
Under the direct write-off method of accounting for uncollectible accounts, Bad Debts Expense is debited?
a.at the end of each accounting period.
b.when a credit sale is past due.
c.whenever a pre-determined amount of credit sales have been made.
d.when an account is determined to be worthless.
Accounting question bad debt expense #3?
A company started the year with Accounts Receivable of $15,000 and an Allowance for Uncollectible Accounts of $3,500 (credit). During the year, sales (all on account) were $110,000 and cash collections for sales amounted to $105,000. Also, $2,000 worth of uncollectible accounts were specifically identified and written off. Then, at year-end, the company estimated that 15% of ending Accounts Receivable would be uncollectible. Answer the questions below.
Requirement 1:
What is the journal entry to record bad debts expense? (Omit the "$" sign in your response.)
General Journal
Debit
Credit
(Click for List) Cash Accounts receivable Allowance for uncollectible accounts Sales Write-off expense Bad debt expense Net realizable value Sales returns and allowances Allowance expense Notes receivable
(Click for List) Cash Accounts receivable Allowance for uncollectible accounts Sales Write-off expense Bad debt expense Net realizable value Sales returns and allowances Allowance expense Notes receivable
--------------------------------------------------------------------------------
Requirement 2:
What amount will be shown on the year-end income statement for Bad Debts Expense? (Omit the "$" sign in your response.)
Bad debt expense
$
Requirement 3:
What is the balance in the Allowance for Uncollectible Accounts after all the adjustments have been made? (Omit the "$" sign in your response.)
Allowance for Uncollectible Accounts
$
take your homework to the homework section!!!
accounting - a bad debt of 5000 written off is it in balance sheet??
right im trying to put together a p&l and a balance sheet for exam i have tomorrow,!
however slightly confused with the bad debt of 5000 is fully written off at 31 dec 04, but there is no specific doubtful debtors. the general bad and doubtful debt provision should amount to 3% of debtors
(total debtors is 125,000)
so i figured for the p&l i have to write off 5,000 (thats with the costs)
and create a provision 120,000*3%=3600
for balance sheet would 5000 go in current libablities (as i have written this value off, or would i not mention it)
thanks
If what you are asking is: A specific debt of $5,000 should be written off at year end AND the Allowance for Doubtful Accounts at year end should be 3% of debts ($125,000). Is that the question?
If so, you write the $5,000 off against the Allowance for Doubtful Accounts (credit Receivables, debit Allowance).
Then you look at the amount remaining in the Allowance and see how much you would need to add to get the amount to $3,600 (3% * $120,000). You would debit Bad Debt Expense and credit Allowance for that amount.
Good Luck!!
How do yo use the allowance method to account for bad debts in accounting?
Can you seen me an example of a problem about bad debits for accounting
try this site
http://www.futureaccountant.com/
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