Bad debt written off #400 Adjust provision for bad debt to 2% of debtors and create provision for discount allowable at 1% of debtors ?

To adjust the provision for bad debt to 2% of debtors and create a provision for discount allowable at 1% of debtors, you would need to make the following journal entries:

1. Increase the provision for bad debt:
Debit: Bad Debt Expense
Credit: Provision for Bad Debt

2. Create a provision for discount allowable:
Debit: Discount Allowable Expense
Credit: Provision for Discount Allowable

These entries will ensure that the provisions are accurately reflected on the balance sheet and income statement.