The proportion of bad debt provision is the company's total accounts receivable at the end of the year, and the bad debt provision is made according to a certain proportion (the proportion is determined by each unit in combination with the actual situation of the company).
Extended data:
The extraction method of bad debt reserve shall be determined by the enterprise itself. An enterprise shall make a list, specifying the scope of provision for bad debts, the way of withdrawal, the division of age and the proportion of withdrawal, which shall be approved by the shareholders' meeting or the board of directors, the manager (director) meeting or similar institutions according to the management authority, reported to the relevant parties for the record in accordance with the provisions of laws and administrative regulations, and kept at the company's location for investors' reference.
Once the extraction method of bad debt reserve is determined, it shall not be changed at will. If changes are needed, they should still be submitted to the relevant parties for filing according to the above procedures after approval, and explained in the notes to the accounting statements.