Accounts receivable: refers to the money that an enterprise should collect from the purchasing unit or the employing unit when selling goods, products or providing services. Accounts receivable is a creditor's right of an enterprise, which is mainly caused by credit sales. The seller delivers the goods first and then collects the money, and the unpaid money is recorded as accounts receivable. If the money cannot be recovered, it will bring undue losses to the enterprise.
When accounts receivable occur:
Debit: accounts receivable
Loan: income from main business
Taxes payable-VAT payable (output tax)
When collecting money:
Borrow: bank deposits and other subjects.
Credit: accounts receivable
Accounting treatment of uncollectible accounts receivable after resale.
Bad debt reserve:
Debit: Credit impairment loss
Loan: bad debt reserve
When bad debts occur:
Debit: bad debt reserve
Loans: accounts receivable, etc.
Recover confirmed bad debts and write off accounts receivable.
Debit: accounts receivable, etc.
Loan: bad debt reserve
Recover account
Debit: bank deposit
Loans: accounts receivable, etc.