AB InBev India Senior General Ledger Analyst Interview Questions and Answers

Journal entries for provision for bad debt involve debiting bad debt expense and crediting allowance for doubtful accounts.

• Debit bad debt expense to recognize the expense on the income statement

• Credit allowance for doubtful accounts to reduce the value of accounts receivable on the balance sheet

• Adjust the provision based on estimated bad debts using aging analysis or percentage of sales method

Journal entry for inventory loss due to fire and insurance claim

• Debit Inventory account for the value of inventory lost due to fire

• Credit Insurance Claim Receivable account for the amount claimed from insurance

• Debit Insurance Claim Receivable account for any deductible or unrecovered amount

• Credit Loss on Inventory account for the difference between inventory value and insurance claim

• Ensure to include detailed descripti