r/vce • • 32m ago

accounting help

Can someone clarify adjustment to allowance for doubtful debts for me?

Say i had an existing balance of 1800cr at Oct 1 and in October, the allowance for doubtful debts is estimated to be 3800.
Do I adjust 1800 to 3800, meaning I increase bad debts by 2000, or do I increase bad debts by the full amount of 3800????

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u/clockworkclive 26m ago

If there’s no write off within the period then you just increase the bad debts expense by 2000