Accounting Report – Term Paper

Receivables 150 000    
Inventory   150 000  
To record the sale of inventory      
Cash 165 000    
Receivables   165 000  
To record cash collections      
Allowance for bad debt 30 000   R
Receivables   30 000 R
To record sale of inventory      
As this is highly likely to be a bad debt, it will be reversed when the customer honours their obligation