bad debt

bad debt
An *accounts receivable balance whose collection is doubtful. Under most systems of *Generally Accepted Accounting Principles, an *allowance for bad debts is raised to acknowledge the reduced likelihood of recoverability of a customer balance. When an item is known with certainty to be irrecoverable, it is usually subjected to a *write-off to expenses. The term "bad debt" is sometimes distinguished from "doubtful debt" in that the former designates a customer balance known to be irrecoverable, while the latter indicates a customer balance of potential, if unlikely, recoverability. However, the two terms are frequently used synonymously.

Auditor's dictionary. 2014.

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Look at other dictionaries:

  • bad debt — see debt Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. bad debt I …   Law dictionary

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  • bad debt — n a debt that is unlikely to be paid …   Dictionary of contemporary English

  • bad debt — ► NOUN ▪ a debt that cannot be recovered …   English terms dictionary

  • bad debt — noun count money that someone owes but will never pay …   Usage of the words and phrases in modern English

  • Bad debt — A bad debt is an amount that is written off by the business as a loss to the business and classified as an expense because the debt owed to the business is unable to be collected, and all reasonable efforts have been exhausted to collect the… …   Wikipedia

  • bad debt — noun a debt that is unlikely to be repaid • Hypernyms: ↑debt * * * bad debt noun A debt that cannot be recovered and is therefore written off as a loss • • • Main Entry: ↑bad bad debt A debt of which there is no prospect of payment • • • Main… …   Useful english dictionary

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  • Bad Debt — A debt that is not collectible and therefore worthless to the creditor. This occurs after all attempts are made to collect on the debt. Bad debt is usually a product of the debtor going into bankruptcy or where the additional cost of pursuing the …   Investment dictionary

  • bad debt — An uncollectible debt. A debt which may be deducted from gross income in determining income subject to tax. Anno: 39 ALR2d 898. A debt which is worthless because, in the exercise of sound business judgment, there is no likelihood of recovery… …   Ballentine's law dictionary

  • bad debt — UK / US noun [countable] Word forms bad debt : singular bad debt plural bad debts business money that someone owes but will never pay …   English dictionary

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