Debt – for someone it is a heavy burden, but for someone a way to earn.
What category of bad debt expense journal entry?
What categories of bad debt expense journal entry are there?
Debt can be of several categories:
The most common category of debt is when you owe.
Far fewer such subjects to whom they should.
And units of such subjects who earn on debt.
bad debt expense journal entry can also be of several categories.
What to do with bad debt expense journal entry?
If the subject is a debtor:
bad debt expense journal entry need to give. Make a schedule and monthly give a comfortable amount. Do it every month and soon there will be nothing left of the debt.
If the subject should?
You need to get your money back and never lend it again.
bad debt expense journal entry and profit.
Also, using debt, you can earn money. Here are some examples:
⬤ right to debt can be bought with a huge discount and then claim it,
⬤ a debt you can buy an asset that will bring more income than the payment on debt,
⬤ debt can be taken at a small percentage and give it at a higher percentage,
⬤ other options.
bad debt expense journal entry must move from one category to another category.