Hi, Im having a bit of brain fade and would just like to check if I am correct!
Client who is on the VAT Cash accounting scheme - Made sale to customer and it is now certain they are not going to get paid.
I am aware that no VAT adjustment is required, however, am I correct in thinking these are my entries:
Dr Bad Debt Write off (P&L) - with the NET sale
Cr Trade Debtors with the NET sale? - but the Debtors includes the Gross figure??
Or am I just having a head-mash day???