Am I write in thinking that at the month end when doing all the adjustments, bad debit is classed as an expense and therefore a debit ajustment?? or am I total wrong, Ive been lefty a note for bad debt and it has written on it credit adjustment.
Yes usually bad debts are classed as an expense and therefore a debit entry. Usually bad debts are customers that haven't paid their bills so you credit debtor's control account (and debtor's account) and debit bad debts. Unless of course you are talking about Provision for bad debts, in which case it is a credit adjustment, being deducted from debtors in the balance sheet.
I have printed of all the reports ie Receipts - refunds Credit - discount, bank charges and bad debit write off Debits
I have to entry the totals on to a spread sheet for the month end, everything is fine apart from the credits do I add them to my totals or deduct them?? Ive got myself so confused :(
