The bathroom is offset from the beds, located in a corner of the room near the entrance. Standard double room bathrooms are often equipped with towels, floor mats, plastic water cups, hairdryers and assorted travel size bottles of soap, shampoo, body lotion and conditioner.
Therefore a provision account called allowance for doubtful accounts is credited in the adjusting entry. Thus: The bad debts expense account, just like any other expense account, is closed to income summary account of the period. The allowance for doubtful debts is contra-asset account. Accounts Receivable. $15,000.
At the end of the accounting period, the amount of uncollectible accounts in accounts receivable is adjusted. Two accounts are used to complete the adjusting entries: Allowance for Doubtful Accounts and Bad Debt Expense. Allowance for Doubtful Accounts is the running total of the business' past-due accounts receivable, and Bad Debt Expense is the amount of past-due accounts receivable for a particular accounting period.