Question

What is meant by provision for doubtful debt?

Answer 1

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U R ANSWER...

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➡. THE PROVISION FOR DOUBTFUL DEBTS IS THE ESTIMATED AMOUNT OF BAD DEBTS THAT WILL ARISE FROM ACCOUNT RECEIVABLE .

➡ THAT HAVE BEEN ISSUED BUT NOT YET COLLECTED.

➡ IT IS IDENTICAL TO ALLOWENCE FOR DOUBTFUL DEBTS.

➡ THIS PROVISION USED UNDER ACCRUAL BASIS ACCOUNTING.

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Answer 2

The provision for doubtful debts is the estimated amount of bad debt that will arise from accounts receivable that have been issued but not yet collected. It is identical to the allowance for doubtful accounts.