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