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In Financial statement, the provision/allowance for bad debt is posted in Current Assets with the negative balance. The expense is booked in debit side which appears in Proit and Loss statement whereas credit side will appear in Balance Sheet on Provision for Bad Debts on Current Assets with negative.
It has to be presented as a deduction from Accounts Receivable on the current side of balance sheet or statement of financial position. 2 examples of presentation below:
Accounts receivable (net of allowance for bad debts) xxxx
OR
Accounts Receivable xxxx
Less: Allowance for Bad Debts xxx
-------
Net Accounts Receivable xxxx
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