Bad debts of Business?

[Suba]

Baddebt occurs due to sales of products or merchandise that are not paid for by customers, Baddebt can occur to individuals or companies, recorded as uncollectible accounts as a cost to reduce Account Receivables. Baddebt removal can use direct method or allowance method.

 

[Sariana23]

Bad debts, from what I have learned here at Bizdustry, are those debts acquired by clients when products are taken out of business on credit. To avoid the above it is better not to sell on credit, but if it is already cost effective, you must back the product with a guarantee, either a good with a price proportional to the product you are selling or a signed contract endorsed by the banks.

 

[Ralphjoe]

Bad debts are those Debts that are owned to a business that the business cannot recover again. They are mostly debts that the business gives out to their customers and they are written off the financial account book.

 

[Victor001]

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 at a point will need additional income to procreate or stand out,there is no harm in getting debt but payment of debt as at when due is important.

 

[Nicklas22]

Bad debt simply means money owned an outsider own you that you can't collect, you just have to forget about the money

 

[Setho]

Bad debts are debts incured by a a customers that have grown to the extent where you have to forgive the debt. You should avoid this by strictly selling on cash and carry basis only.

 

[Senator]

In business, if people owe you some money they are supposed to pay back at an agreed time period and they refused paying up, in the settlement of the account books, that is entered as a bad debt.

 

[Dowenship]

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.

Hmm...bad debt?
I can only describe bad debt as a debt that didn't yield profit at the long run and it incur more debt to the business which is bad for any business.

 

[Richard92]

Bad dept kills business fast every business owner must avoid bad debts, the best way to avoid bad debt is to allow your customer know that you don't sell on credit and also avoid loans collection.u

 

[Mostee501]

I take bad debts as potential loses in a business, when running your business planning on bad debts ahead of time is a good way of curtailing the bad debts.

 

[GIFTMICHAEL]

I can't involve myself in a debt which i can't be able to meet up. I'll go for loan which i can meet up during repayment if i truly need a loan.

 

[Kelly5]

Your debtors in your business may have taken or collected a certain quantity of products from you and might also have refused to pay back the debt owed you, that money you were unable to get as a result of non remitance from your debtors Is called bad debts

 

[Jeremiah Trump]

In my own opinion bad debt are own by a client which that is very bad I can’t ever imagine someone owing me a bad debt because it is bad and what is bad is bad but business is good and you don’t have anything to worry about because you know your clients and there are no bad debt in that kind of business so I would say doing business is good but bad debt is the very thing I can’t assume because it is bad and not a god thing beca Some of the consequences of bad debt involves death

 

[Setfragil]

Bad debts in business are not good at all. When it is too much, a business can be closed down. Bad debts are debts owed by the customers that cannot be recovered by the business due to inability of the customers to pay, disappearance of the customers or death of the customers. To avoid bad debts we should make sure that giving out credit facilities that can affect the financial status of the business is avoided.

 

[Sheyemanu]

Well, concerning your question in the above post on what bad debts are, i will have to be honest and say that I am not completely familiar with what bad debts are but I will have to say that i think they happen when a customer you have guven credit owes you

 

[Setho]

She you are starting a business you should not lend out your goods or services. Even if you will want to , it should be in a way that there is automatic payments.

 

[Shigobad20201]

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.

One of the bad reaoccuring debt in a business is borrowing a money to start a business in a company, the debt will affect the company negatively because the company does not have a good financial background to start paying debt.

 

[FreshKaz11]

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.

Firs and foremost no business owner should allow a long time debt in is business,all because long time debt will reduce the profit of a business and it could make the ruin the business at the end of the day tho.

 

[Bookwormlux1]

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.

This is one major reason why I refused giving things out on credit to customers at the time I was managing my mother's shop. I don't like the idea at all. People would frustrate you.

 

[Setho]

Bad debts as I understand is the money that your customers or clients owe you .as a starting business you should avoid giving out your foods on credit.