H Henderson ,a debtor is insolvent and the balance of R180 on his account must be written off as a bad debts . Although no entry has been made and his balance doesn't occur on the list,how to record?

To record the bad debt of R180 for H Henderson, you would make the following journal entry:

Bad Debt Expense (Income Statement) - R180
Accounts Receivable - H Henderson (Balance Sheet) - R180

This entry will reduce the Accounts Receivable balance by R180 and recognize the bad debt expense on the income statement. This will accurately reflect the financial position of the company after writing off the bad debt.

Journal Entry to Write Off Bad Debt:

Debit: Bad Debts Expense R180
Credit: Accounts Receivable - H Henderson R180

Explanation:

- Debit to Bad Debts Expense: Increases the expense account for uncollectible accounts, reducing the net income.
- Credit to Accounts Receivable - H Henderson: Reduces the balance owed by H Henderson, writing off the uncollectible portion of the debt.

Assumptions:

- Henderson's account balance of R180 is considered uncollectible and must be written off.
- No prior entry has been made to recognize the bad debt.
- Henderson's balance does not appear on the list of accounts receivable provided.

Impact:

- The bad debt write-off reduces the company's net income by R180.
- It also reduces the total accounts receivable balance by R180, improving the company's financial position.