Bad debts of Business?

[Sheun450]

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.

 

[bhennie]

Our task at Debt Recoveries Australia is to collect debts. However, as we come into contact with a lot of credit departments and accounts receivable systems and processes, we also get to see how debts come about in the first place and how they can be avoided. Wouldn’t it be great to prevent all that bad debt from happening in the first place? But how? What tools should you put in place at the beginning to minimise outstanding debts?

 

[adeniji]

Most of times, bad dept occur when starting business for the first time. Bad dept occur due to in acuracy plans that as been schedule for business.

 

[solomonmali]

Bad debt affect business, there are many ways to manage such debt, at time the continuance of such people ( debts) can be identified, bad debt damages business identity.

 

[Akinwale701]

they are debts that have been owed for so long by customers that the business is certain not to be able to recover again, accounting refers to them as irrecoverable debts and it's one of the many expenses and problems an organization is always faced with

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.

 

[Mahnoor]

Business bad debt refers to any debt created or acquired in a trade or business (or closely related to a trade or business) that becomes partially or completely worthless and can not be collected.

Business bad debt is the result of a customer, another business, or an individual who cannot or refuses to pay their debt obligation to your business for goods and services received or rents owed.

 

[Maiira]

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.

 

[Afrinish]

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
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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

 

[Mariyam]

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 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.

 

[Alexandoy]

Bad debts are called such because it cannot be recovered anymore. The borrower may have died or may have vanished to escape collection of the debt. In accounting bad debt is considered loss so it will be deducted from the profit earned, if any. With a retailing business it is not rare to have a bad debt. That customers have that bad habit of buying that they cannot afford to pay.

 

[Onachukwu]

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.
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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.

 

[Jimmie150]

Bad that debits for me I feel they come in different forms it could be from the buyers or sellers of a particular products and services. Take for example a customer who has accumulated so much debit in a company and now he stops patronizing them.

 

[Asad Ali]

Toxic loans is the cash that a consumer owes to you that you cannot raise, so you must pay off. A bad debt may occur for any number of situations, but it is either due to the credit of an unsuited customer or to changing circumstances in the case of a customer for the most part.

 

[QalabDogar1906]

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.

I think if you not hard work in business then it is very bad debts for us because without hardworking we are no able to earn money and our business is not grow up then I suggest you to do business with hard work

 

[Frank]

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 debts owed that you can't recover easily from those debtors. It has stayed a number of years and it has been pretty difficult to get it back. In most businesses, after a number of years, bad debts are written off in the books and the company bearing the loss.

 

[Anas Chaudhary]

A bad loan is an expense after which the payment of a credit already extended to a customer is undivided. Bad debt is an emergency that must be accounted for by all businesses that give credit to consumers, as there is always the risk that the payment will not be received.

 

[Umerfarooq]

A bad loan is an expense after which the payment of a credit already extended to a customer is undivided. Bad debt is an emergency that must be accounted for by all businesses that give credit to consumers, as there is always the risk that payment will not be received

 

[zahidhussain]

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.

Bad debt of a buisness is that a company owned by a client or other resources. If u are uunable to collect money and you have no knowledge about your financial conditions and you are get it by someone to support your buisness

 

[Kunkun]

Bad debts in business are the type of debts that are not beneficial to the business. Bad debts dies not bring in profits instead the bring about depreciation to the business. A leader with knowledge can lead a business to the ground quickly because of too much bad debts are doing more harm than good to the business

 

[kayode10]

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 those debt that happens to our business spending on wrong thing. Sometime this happens when the business owner wants to acquired good asset or investment but later turn out to be bad moving and leads to debt. This best way to offset this bad debt is to first stop it and increase sales in order to meet up the debt.