What is bed debt full details
Answers
Bad debt refers to loans or outstanding balances owed that are no longer deemed recoverable and must be written off. This expense is a cost of doing business with customers on credit, as there is always some default risk inherent with extending credit.
Answer:
Bad debt refers to loans or outstanding balances owed that are no longer deemed recoverable and must be written off. This expense is a cost of doing business with customers on credit, as there is always some default risk inherent with extending credit
For example, if gross receivables are US$100,000 and the amount that is expected to remain uncollected is $5,000, net receivables will be US$95,000. In financial accounting and finance, bad debt is the portion of receivables that can no longer be collected, typically from accounts receivable or loans.