The company's provision of bad debts does not need approval, but the confirmation of bad debts must be approved by the tax authorities.
Bad debts should be treated according to accounting standards, but if the loss of bad debts is to be deducted when calculating enterprise income tax, it must be approved by the tax bureau.
1. The extraction method of bad debt reserve shall be determined by the enterprise itself. The enterprise shall list the contents, specifically indicate the extraction scope, extraction method, aging division and extraction ratio of bad debt reserve, which shall be approved by the shareholders' meeting or the board of directors, managers' meeting or similar institutions in accordance with the management authority, and reported to the relevant parties for the record in accordance with the provisions of laws and administrative regulations; And put it in the company's location for investors' reference.
2 enterprises overdue for more than 3 years, accounts receivable have been treated as losses in accounting, can be treated as bad debt losses, but should explain the situation and issue a special report.
3. Accounts receivable that are overdue by the enterprise for more than 65,438+0 years, and the single amount does not exceed 50,000 yuan or one tenth of the total annual income of the enterprise, and have been treated as losses in accounting, can be regarded as bad debt losses, but the situation should be explained and a special report should be issued.
How to write the accounting entry of bad debt reserve?
Accounting entries of bad debt provision
1. When an enterprise sells goods and other receivables,
Debit: accounts receivable
Loan: income from main business
Taxes payable-VAT payable (output tax)
2. When collecting accounts receivable,
Debit: bank deposit
Credit: accounts receivable
3. When an enterprise purchases goods, and the unit prepays the packaging fee and transportation and miscellaneous fees,
Debit: accounts receivable
Loans: bank deposits
4. When the prepaid expenses are recovered,
Debit: bank deposit
Credit: accounts receivable
5. The accounts receivable of the enterprise are settled by bills receivable. When an accepted commercial bill is received,
Debit: notes receivable
Credit: accounts receivable
Accounting entries for impairment of receivables
1. When an enterprise makes provision for bad debts, it shall make the following accounting entries:
Debit: Asset impairment loss-bad debt provision (according to write-down amount)
Loan: bad debt reserve
2. When offsetting the excess provision for bad debts, make the following accounting entries:
Debit: bad debt reserve
Loan: Asset impairment loss-bad debt provision.
3. When the enterprise has bad debt losses, make the following accounting entries:
Debit: bad debt reserve
Credit: Accounts receivable/other receivables
4. When the confirmed and resold receivables are later recovered, make the following accounting entries:
Debit: Accounts receivable/other receivables
Loan: bad debt reserve
Meanwhile:
Debit: bank deposit
Credit: Accounts receivable/other receivables
5. The following accounting entries can also be made according to the actual amount recovered:
Debit: bank deposit
Loan: bad debt reserve