Trợ cấp Tài khoản nghi ngờ có một sự cân bằng tín dụng, đó là những gì chúng ta mong đợi kể từ khi nó được trừ đi từ khoản phải thu. Kể từ khi doanh thu của $ 2000 được ghi nhận khi hợp đồng đã được hoàn thành, thu nhập phải được giảm $ 2,000 kể từ khi quốc gia không bao giờ có thể nhận được tiền nợ từ hợp đồng. | Depreciation We set up an account on the balance sheet called Allowance for Doubtful Accounts which is then subtracted from Accounts Receivable on the balance sheet like this Current Assets Accounts Receivable 38 000 Less Allowance for Doubtful Accounts 2 000 Net Accounts Receivable 36 000 The Allowance for Doubtful Accounts has a credit balance which is what we expect since it is subtracted from Accounts Receivable. Since revenue of 2 000 was recorded when the contract was completed income must be reduced by 2 000 since National may never receive the money owed from the contract. Rather than simply reduce one of the revenue accounts by 2 000 we create an expense account called Bad Debts since the problem wasn t earning the money it was collecting it. The adjusting entry to record this is Jan 31 96 Bad Debt Expense Allowance for Doubtful Accounts Invoice 1387 likely uncollectable 5120 1210 2 000 2 000 Depreciation Equipment deteriorates during use and therefore loses value each year. Part of the cost of the equipment should be allocated as an expense to each year s operation benefiting from its use. This allocation of the cost of a piece of equipment over its useful life is called depreciation. Brown determines a fair allocation of the cost of his equipment over its useful life and determines these depreciation figures for the year ended January 31 1996 Trucks - 8 000 Construction Equipment - 5 000 and Buildings - 4 000. 11-4 Simply Accounting Accrued Expenses Rather than simply reduce the balance of the Trucks Construction Equipment and Buildings accounts on the balance sheet more information is provided if we create accounts called Accumulated Depreciation for each which have credit balances for the same reasons as the Allowance for Doubtful Accounts account. On the balance sheet the Trucks account would look like this Fixed Assets Trucks 32 000 Less Accumulated Depreciation 8 000 Trucks net 24 000 Here the net means net of depreciation. The journal entries to .
