Question

The amount which is not recoverable from debtors. Answer in a word / phrase / term.

Answer 1

The amount which is not recoverable from debtors is also known as Bad debt

Answer 2

Answer:

Bad debt

Explanation:

When any amount which is not recovered or is not recoverable from the debtors that amount is known as a bad debt.

The known recoverable amount is a liability or loss for the business as it cannot be recovered. There can be two reasons for the occurrence of bad:

One is the insolvency of a partner and the other being fraud involving non-payment.