How To Write Off Provision For Doubtful Debts. Check this out with another article of mine in another site: Every entity with large portfolio of trade receivables always faces an issue on how to calculate bad debts provision on these receivables.

Journal entry for the bad debt provision. Go to sales register and create a new sale. In the first year of accounting for doubtful debts, the total doubtful debt expense also forms the provision account balance.