Article ID: 9106

Entries that Post to the G/L when You Write Down a Bill in Accrual Accounting

You can write down an invoice with either of the following features in Accrual Accounting systems:

Change/Write Off Bill

The following occurs when you permanently write down a bill that contains a Hard Cost:

Reports that the transaction appears on

G/L Debit

G/L Credit

 

Write Up/Down Journal

User Defined Expense Account

1200 (Accounts Receivable)

 

Write Up/Down Journal

4000 (Lawyer's fee account)

1200 (Accounts Receivable)

 

GST/HST Journal

2400 (GST/HST Payable)

1200 (Accounts Receivable)

 

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Provisional Write Off Bill

The following occurs when you provisionally write down a bill that contains a Hard Cost:

Reports that the transaction appears on

G/L Debit

G/L Credit

 

Write Up/Down Journal

User Defined Expense Account

1201 (Provision for Bad Debt)

 

Write Up/Down Journal

4000 (Lawyer's fee account)

1201 (Provision for Bad Debt)

 

GST/HST Journal

2400 (GST/HST Payable)

1201 (Provision for Bad Debt)

 

NOTE:

A provisional write off only affects the general ledger and GST/HST journal. You can also show the entry on the Write Up/Down Journal when you select the Include Provision for Write Offs option prior to running the report.

 

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