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 The Department of Accounting was pleased to host an engaging and informative guest lecture on Bad Debts and Allowance for Doubtful Debts, a crucial topic in accounting and financial management. This session, conducted as part of a collaborative Guest Lecture session with FIA students at ºìÐÓÊÓƵ College, provided students with valuable insights into how businesses handle uncollectible accounts, ensuring accurate financial reporting and risk assessment.

The lecture was delivered by Ms. Vivi Norazlina Sidik, Teaching Fellow and Dr. Hawariah Dal Nial, Lecturer at the Department of Accounting, School of Business, ºìÐÓÊÓƵ University. They both explored the key differences between bad debts and doubtful debts, explaining how bad debts are confirmed as uncollectible and must be written off, while doubtful debts represent uncertain receivables that may or may not be recovered. Understanding these concepts is essential for financial professionals, as they directly impact a company’s financial statements and decision-making.

A major focus of the session was the accounting treatment of bad debts. Ms. Vivi detailed how businesses classify and record bad debts as expenses in the income statement and remove them from accounts receivable. A step-by-step breakdown of the double-entry accounting system was provided, demonstrating the necessary journal entries for recognising bad debts.

The session also covered allowance for doubtful debts, an essential practice in financial reporting. This allowance ensures that businesses anticipate potential losses from customers who may default on payments. Students learned that companies typically estimate doubtful debts using a percentage of total accounts receivable based on historical trends. Dr. Hawariah provided practical examples, illustrating how businesses adjust their provisions annually to reflect changes in receivable balances.

An interactive discussion followed, where students examined real-world scenarios. Case studies demonstrated how companies determine the appropriate percentage for doubtful debt allowances and the impact of increasing or decreasing these allowances on financial statements. Additionally, Ms. Vivi and Dr. Hawariah addressed best practices for managing accounts receivable, including strategies for reducing bad debts through credit policies, monitoring overdue accounts, and maintaining strong customer relationships.

This guest lecture was particularly beneficial for students pursuing accounting, finance, and business management, as it deepened their understanding of risk assessment and financial decision-making. The session not only clarified theoretical concepts but also provided practical applications that students can use in their future careers.

The collaborative nature of this session with FIA students from ºìÐÓÊÓƵ College enriched the discussion, allowing for a dynamic exchange of ideas and perspectives. Such initiatives foster academic partnerships and create valuable learning opportunities for students from different institutions.
The Department of Accounting extends its sincere appreciation to Ms. Vivi Norazlina Sidik and Dr. Hawariah Dal Nial for delivering such a thought-provoking and informative session. The knowledge shared will undoubtedly aid students in navigating complex financial landscapes. We also thank ºìÐÓÊÓƵ College and its FIA students for their participation in this enriching academic exchange.

We look forward to hosting more expert-led lectures that enhance the learning experience at ºìÐÓÊÓƵ University. Stay connected for upcoming academic events and professional development opportunities!

Vivi Norazlina Binti Mohd. Sidik
ºìÐÓÊÓƵ Business School
ºìÐÓÊÓƵ Email: @email 

Dr. Hawariah Dal Nial
ºìÐÓÊÓƵ Business School
Email: @email