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Debtors long due aed.175,0&aed 10,0 is for provision.negotiated by customer pay 150,0 as final settlement?watz the journals?

A customer has to pay long due debt balance of Dhs.175,0/-.Finally customer negotiated to Pay only Dhs.150,0/-as full and final settlement and company agreed it.Before company kept Dhs.10,0/-as Bad debts provision for the same due?Company receive the money(Dhs.150,0) as bank transfer?What are the journal?

Accounts Payable Accounts Receivable
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Question added by ABDUL MAJEED KUNNAM PADATH , Chief Accountant , Arab building materials
Date Posted: 2013/10/12
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Shaji Menhal
by Shaji Menhal , Deputy Manager Project Accounting & Commercial , Sterling and Wilson Solar Limited

Dr. Bank                             1500 AED

Dr.Provision for Bad Bebt    100 AED

Dr. Bad Debts(Expense)      150 AED 

 

Cr. Debtor(Customer)     1750 AED

Khaja Moinuddin
by Khaja Moinuddin , Group Assistant Financial Controller , Confidential

Journal Entry;

Bank - Debited1500, Provision for Doubtful Debt100 Debit and Bad Debts150 Debit and

Customer - Credited1750.

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