Accountancy, asked by iamabhaymittal7583, 1 year ago

What is the difference between bad debts and provision for bad debts

Answers

Answered by ritik77777
0

Explanation:

The provision for bad debts might refer to the balance sheet account also known as the Allowance for Bad Debts, Allowance for Doubtful Accounts, or Allowance for Uncollectible Accounts. In this case Provision for Bad Debts is a contra asset account (an asset account with a credit balance).

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