Professional Services
Allowance for Doubtful Client Receivables
Provisioning for professional fee invoices where collection is uncertain due to client financial difficulty.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Bad Debt Expense (Professional Fees) | Expense (+) | 7,500.00 | - |
| Allowance for Doubtful Accounts | Contra-Asset (+) | - | 7,500.00 |
💡 Accountant's Note
Under IFRS 9, trade receivables must be assessed for expected credit losses. When a client enters financial distress or disputes an invoice, a specific provision is raised. The allowance reduces the net receivable on the balance sheet without removing the legal claim.
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