Question

what is the treatment of bad debts reserve in final accounts​

Answer 1

Answer: The bad debt reserve is a provision for the estimated amount of bad debt that is likely to arise from existing accounts receivable. A large reserve may be caused by low-quality customers, which may in turn be caused by a company's reduced attention to screening the financial condition of prospective customers.

Answer 2

The bad debt reserve is a provision for the estimated amount of bad debt that is likely to arise from existing accounts receivable. A large reserve may be caused by low-quality customers, which may in turn be caused by a company's reduced attention to screening the financial condition of prospective customers.




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