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What will be the entry if i need to cancel a receivables belonging to previous year due to course cancellation |
What will be the entry if i need to cancel a receivables belonging to previous year due to course cancellation Just reverse the entry. If you are asking for accounting entry, there are two ways to cancel a receivable last year. The problem is that, if this is a last year entry, the revenue has been recongised as income last year. 1 write it off as bad debt. However, since the obligation to pay has never been created (the course is cancelled), this method is not applicable 2 reverse the entry. This means Debit the revenue (course income) , and credit the accounts receivable. However, the Sales is last year, so it should not be debited directly into income, but to an account "Course Cancelled" or something like that. This account will be set off against the total revenue this year. |
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