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.
Writing off bad debt example transactions. Before there can be a bad debt expense or allowance for doubtful accounts, there must be an account receivable. An account receivable is an amount that is owed to an entity, usually by one of its customers as a result of a recent sale or the ordinary extension of credit.