Bad debts of Business?

[Hasan Raza]

What are the bad debts of the business? How bad debts occurs during operation of the business? And how these are treated in financial statements of the company?
Your knowledge is great and need suitable answer because I have to do it in financial statements.

 

[Diamond07]

Bad debt is money owed to you by a client, that you are unable to collect and therefore have to write off. A bad debt can happen for any number of circumstances, but for the majority of the time it will either be due to offering credit to an unsuitable customer, or due to a customer’s circumstances changing.

 

[Philip Omotayo]

Bad debtors are those who collected products on credit and refuses to pay as at when due. Bad debtors turn their deaf ears to your plead to come pay up their debt. Some of them goes a long way to even pick up fight as a way of preventing you to request for your money.

 

[idhans]

What are the bad debts of the business? How bad debts occurs during operation of the business? And how these are treated in financial statements of the company?
Your knowledge is great and need suitable answer because I have to do it in financial statements.

So many companies banks, and other financial institutions have close down due to bad debt. If you don't want your company to run into losses you have to do a thorough background check of whosoever you are lending, or loaning money to.

 

[Hasan Raza]

Bad debtors are those who collected products on credit and refuses to pay as at when due. Bad debtors turn their deaf ears to your plead to come pay up their debt. Some of them goes a long way to even pick up fight as a way of preventing you to request for your money.

Definitely I understand your point of explanation dear. But I think you didn't understand the question I asked or you didn't read it completely. The main purpose was to know about its treatment of entry that where is will exist in the financial statements?

 

[Damscooguns73]

Concerning bad debts of business. Well, I believe that bad debt is referred to when a customer refuses to pay for goods, products or services rendered om credit and in expectation to pay in at when due but goes south. These kind of customer or debtors are business killer which doesn't want growth for such business

 

[RETIRED SINNER]

What are the bad debts of the business? How bad debts occurs during operation of the business? And how these are treated in financial statements of the company?
Your knowledge is great and need suitable answer because I have to do it in financial statements.

Bad debts are depts people owe u that u can't get back, example if ur running a school business and someone doesn't pay u first term, and second term, if the person comes on the third term to pay, you will have to remove the old dept from the current money the person brought, if u continue removing it each time the person pays at a point u might decide to let go of the debt

 

[Ridorz]

Bad debt could be regards as a money that person owe to pay another person but that the person refused to pay. Bad debt is the outstand money that customer owe a company to pay for a long time and that it's not easily to collect on time.

 

[Kehinde]

A bad debt occurs when someone owes you money but you are unable to collect it. The debt is worthless because you cannot collect what you are owed. As a result, you write off the debt as uncollectible. For most small businesses, this happens when you extend credit to customers.

 

[Shivay]

What are the bad debts of the business? How bad debts occurs during operation of the business? And how these are treated in financial statements of the company?
Your knowledge is great and need suitable answer because I have to do it in financial statements.

Every business has bad debts because every business has some grudges when the people are not able to pay the amount to the people. You have to open your every sense while doing business because of these things.
Money becomes bad debt when the people are not able to repay you the money you gave them.

 

[Anymore]

business debts could be recorded in business only when the business is not an online business, and if it does, may be its an online load business, aside this, once physical businesses have digital payment system, then, the business experience little or no debt records.

 

[btaliat]

A business owner should learn how to separate himself from business. A business may decide to lend people money from his own purse and not from the company's purse to avoid negative effects on the business. This means the owner should bear the consequences of the debt and the business.

 

[Psalmseen]

Bad debts can he defined as irrecoverable debt of a business or Organization. Bad debt is treated as expenses and it is recorded in the profile or loss account of the business. In some cases tho, bad debt may be recovered. Too much of bad debts has adverse effect on the business

 

[eojo2401]

Business owner must make provision for bad debt because some of the client you trusted today may change tomorrow to a debt defaulter and such debt may not be recovered again. But if you make provision for such instances, you will not have any issues when bad debt arises.

 

[Damismiling]

Concerning bad debts of business. Well, I believe that bad debt is referred to when a customer refuses to pay for goods, products or services rendered om credit and in expectation to pay in at when due but goes south. These kind of customer or debtors are business killer which doesn't want growth for such business

You are correct, bad debts are killer of business, as they are those unrecoverably debts given out to customers or clients, bad debts can affect the business if it's from multiple clients or customers and can dibber the smooth running of the business

 

[Eodine]

Bad debts are irrecoverable debts. That is, money that your customers owe you but did not pay up after a reasonable amount of time, it is written off in the balance sheet as a liability of that particular company in question.

 

[Olamide wealth]

Bad debt is an expense that a business incurs once the repayment of credit previously extended to a customer is estimated to be uncollectible. Bad debt is a contingency that must be accounted for by all businesses who extend credit to customers, as there is always a risk that payment will not be received.

 

[Nurudeen]

Bad debt is when a company losses money in business. For example if you think you can set up a business and make some profit at the end of the day if they Business runs down and doesn't allow to rip your gain in Business it's bad debt

 

[Eodine]

So many companies banks, and other financial institutions have close down due to bad debt. If you don't want your company to run into losses you have to do a thorough background check of whosoever you are lending, or loaning money to.

The amount of organization or companies that have been run down by debt is numerous but that is why each company should have a provision for bad and doubtful debt in it's financial statement so it can plan how to minimize bad debt.

 

[Sanusi]

Bad debt can come from anybody, it can come from a firm, a club and so on. But to my own perspective bad debts are money a person lend from an organization which could be monetary fund. In a nutshell bad debt are irreplaceable money.