what is bad debts for business.
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Bad debt refers to an amount that is owed by a customer on credit that is not possible for a company to collect. Initially considered an account receivable, it can then be marked as an expense under a bad debt account.
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Answer:Bad debt is an expense that a business incurs once the repayment of credit previously extended to a customer is estimated to be uncollectible. Bad debt is a contingency that must be accounted for by all businesses who extend credit to customers, as there is always a risk that payment will not be received.
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