Accountancy, asked by lakshmi1402, 10 months ago

what is reserve for bad debts?How is reserve for bad debts is different from provision for bad debts?Can anyone explain it with example???​

Answers

Answered by damodarchoudhury
2

Bad debt reserve also know as allowances of dought full debt.Is reduction in a company's account receivable the bed debt reserve of the amount of receivable that the company does not expect it actually collect.

provision for doubt ful debt -

It is the estimated amount of Bad debt that will arise from accounts receivable that have been issued but not yet collected.

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