Accountancy, asked by bikashjena444444, 9 days ago

What is bed debt full details

Answers

Answered by venkybewla
1

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.

Answered by hariuthiras
1

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.

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