How is a bad debt written off reflected in the sales ledger control account?

Intermediate

Answer

Writing off a bad debt credits the sales ledger control account (reducing total receivables) and the specific customer account, with the debit going to bad debts expense. The control account therefore falls by the amount written off, keeping it in step with the reduced debtors list.

Write off 400: Cr Sales Ledger Control 400 (Dr Bad Debts Expense 400).

Real-world example A write-off reduces both the customer's account and the receivables control account by the same amount.

Common follow-ups: Which side of the control account? | Where does the debit go?

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