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D405 D · Adjustments/Write-offs/Reclassification

To record the estimated allowance for bad debts related to non-credit-reform receivables in a nonfiduciary deposit fund. Deposit funds do not recognize net gains or losses.

Proprietary Entry

DebitCredit
240000 Liability for Non-Fiduciary Deposit Funds and Undeposited Collections
131900 Allowance for Loss on Accounts Receivable