Net off payable amount to provision for bad debts

net off provision for bad debts of a client against payable amount to same client.

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So we have this client whose receivable turned to payable because of a credit note issued to a customer but there is still a provision for bad debts mainly attributed to the same client. can the client net off the provision against the payable amount to the same client?

 

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By Tax Dragon
16th May 2018 11:20

If you wish to remain anonymous (and want an intelligible answer) you have to ask an intelligible question. What are you talking about?

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Replying to Tax Dragon:
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By andy.partridge
16th May 2018 11:37

I'm glad you posted that. I really wanted to then wondered if it was just me.

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Replying to andy.partridge:
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By Accountant A
16th May 2018 11:57

Quote:

I'm glad you posted that. I really wanted to then wondered if it was just me.

#MeToo

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By tom123
16th May 2018 12:24

Reverse the provision, as, presumably the original debt is now more than covered by the credit note that has been raised.

If there is a remaining credit balance, refund the customer.

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