it is credit P&l Dr TO net loss
Net Credit Loss
NCL = Net Credit Loss
If there is a net income, debit Income Summary. If there is a net loss, then credit it.
Bad debts are those accounts receivables which have created due to credit sales to customers so if company unable to collect these it will reduce the net profit of company or in case of actual loss it will increase loss amount.
Debt Income Summary Credit Retained Earnings.
Income Statement Credit and Balance Sheet Debit columns.
A credit and debit tally is the total of the credits and debits, separately. The difference between the totals is the net profit or loss.
Net Profit is placed in the Credit Side of the Profit & Loss A/c. of the Company and added to the Capital in the Asset Side of the Balance Sheet.
When does a net loss occur
the company has a net loss
Net credit margin is net interest income minus net credit losses, as a percentage of average managed outstanding balances