The Company made Sales to Kishan & Co of Rs 35000

The Company estimates that only 32000 is recoverable from Kishan

Kishan Dr 35000
           To Sales 35000

P& L Dr 3000
      To Provision for Bad Debts 3000

 (Provision for Bad Debts is a provision,since it increases,we credit it)

Suppose next month kishan paid 32000 by cheque in full settlement

Bank Dr 32000
Provison for Bad Debts 3000
                       To Kishan 35000

(Provision for Bad Debt liability is now decreased,hence we debit it)