Which debts are impossible to collect and it should be treated as business loss?
Answers
bad debt impossible to collect & treated as business loss
Answer:
The answer is bad debt
Explanation:
Debt is the most common phrase, not just in commercial enterprise but across distinctive conditions. Debt is the amount that's recoverable from a person or entity. You simply lend a few hundred to your friend, its amounts to debt. In commercial enterprise, it arises more regularly while items or offerings are furnished in credit score terms.
there may be no rocket science why a enterprise elements on credit. all of us recognize that. The character to whom the credit is lent is called ‘debtors’. so long as he is in a position to pay you or you consider that you can get better the amount from him, is called ‘top money owed.
however when the scenario of your customers gets worse or your perception that he pays you is unsure, is when you got to cope with the money owed in a different way. this is whilst the theory of ‘awful money owed’ receives added.
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