What is bad debts? (Answer in one sentence)
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A bad debt is a monetary amount owed to a creditor that is unlikely to be paid
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Answer:
A non-recoverable debt provided to the creditor.
Explanation:
Bad debt is a type of debt, which is provided by the company to the creditor or the partner but later on, it becomes non-recoverable.
Such that serves as a liability to the company as it does not get paid back by the creditor and possess a loss to the company or the firm.
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