PwC Tax Associate Interview Questions, Process, and Tips

Bad debts are recorded as an expense in the income statement and as a reduction in accounts receivable in the balance sheet.

• Bad debts are debts that are unlikely to be collected from customers.

• The accounting procedure for bad debts involves estimating the amount of bad debts and recording them as an expense in the income statement.

• The allowance method is commonly used to estimate bad debts.

• Under the allowance method, a...read more