As depreciation is to fixed assets, what is the same analogous to debtors
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provision for bad debt
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The answer is bad debt.
As depreciation is to fixed assets, bad debt is analogous to debtors.
A bad debt refers to a debt that cannot be recovered in any way. This can apply to both individuals and companies. Some reasons why a bad debt arises are the debtor does not have enough money to clear off his debt or the company that has borrowed the funds is now bankrupt.
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