Bad debt
Bad debt refers to accounts receivable that a business deems uncollectible, representing revenue for goods or services already delivered on credit that will likely never be received. Effectively managing and accounting for bad debt is critical as it directly impacts a company's profitability, cash flow, and tax liabilities, requiring accurate financial write-offs and robust credit management practices within an accounting or ERP system.
Translations
| Language | Code | Translation |
|---|---|---|
| English | en | Bad debt |
Related Terms
Provision for bad debt · Debt collection · Debt financing · Debt ratio
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