What to do if hotel accounts receivable cannot be collected 1

If the hotel’s accounts receivable cannot be collected, bad debts must be accrued.

The provision for bad debts of accounts receivable falls within the scope of accounting estimates.

Generally, an enterprise decides whether to make provisions for bad debts based on the following conditions:

1) The operating conditions of the other party are such that it cannot continue to operate or the enterprise faces serious losses, or even For companies that are about to go bankrupt, these companies must make provision for bad debts for their debts to the company;

2) The credit rating of the other company. For companies with poor credit, lower qualifications, and weaker strength, the debts owed by these companies will be Provision for bad debts is made for long-term accounts receivable;

3) Accounts receivable for more than three years;

4) Accounts receivable that the enterprise believes are less likely to be recovered. Collect accounts.