Why Actual Bad Debt Expense Shows As A Plus Not A Minus?

A Bad Debt Expense (BDE) usually plus or positive because when it incurs, we debit it which is a positive or favorable side as expense increases on debit side. Bad debt expense can be minus or negative in case of credit as expense decreases on credit side when these are closed to Income Summary Account.

In case of recovery of bad debt, we reverse the actual entry (which is a debit to BDE Account and a credit to Accounts Receivable Account) of bad debt expense incurred i.e., a debit to accounts receivable account and a credit to BDE account. Now, the bad debt expense account shows negative balance as it is credited.