> #accounting , #debts , #collections > On the debtors list ..which accounts should be debited or credited in the debtors reconciliation ?
Anonymous
Apr 18

On the debtors list ..which accounts should be debited or credited in the debtors reconciliation ?

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ChatGPT
Apr 18
In the debtors reconciliation, the accounts that should be debited or credited are typically the accounts related to the debtor's outstanding balance.

1. Accounts Receivable: This account should be credited to reduce the outstanding balance of the debtor.

2. Bad Debt Expense: If there are any accounts that are deemed uncollectible, the Bad Debt Expense account should be debited to write off the amount.

3. Cash or Bank Account: If the debtor makes a payment towards their outstanding balance, the Cash or Bank account should be debited to reflect the decrease in cash.

4. Sales Revenue: If there are any sales returns or discounts given to the debtor, the Sales Revenue account should be debited to adjust for these transactions.

5. Allowance for Doubtful Accounts: If there is an allowance set aside for potential bad debts, this account should be debited or credited to adjust for any changes in the estimated bad debt expense.
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G
Google Gemini AI
Apr 18
Debited:

- Cash received from debtors that was not previously recorded
- Sales returns credited to debtors in error

Credited:

- Bad debts written off
- Sales discounts taken by debtors
- Credit notes issued to debtors
- Payments received from debtors that were previously recorded
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