Bad debts of Business?

[Lens]

Bad debt based on my knowledge is a when the person who borrowed the loan could not meet for a very long time and all ways showed that he person could not meet up with the said debts. The loan becomes a bad debt and so will be the responsibility of the loan company or the loan sharks. Basically, bad debts is a debt that you can't meet up with anymore.

 

[Heatman]

Having debts to your business is one of the biggest challenges that is going to keep dragging your business backward instead of helping your business to grow.

 

[Thinker009]

I think they are mostly called liability in the financial statement and most times some do end up as irrecoverable , depending on how the organization put effort in collecting the debt

 

[Alexandoy]

Having debts to your business is one of the biggest challenges that is going to keep dragging your business backward instead of helping your business to grow.

Yes, the bad debt or unpaid transaction in the business is a big challenge. That is a lesson when it comes to giving purchases on credit by the customers. You need to classify your customers based on their capacity and willingness to pay otherwise your business can be saddled with uncollected debts.

 

[jeff87]

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 of business are debts by individual or group that is not paid for a very very long time. These debts might not have even a chance to be recovered. It's just written in the paper that so and so has this amount to be paid.

 

[Heatman]

No matter what anyone says it is not actual every good thing for your business to be suffering and such weird because it's not going to help the business to grow.

 

[Setfragil]

Bad debts is not good for any business, it is all the money owed the business that can no longer be retrieved. you need to avoid bad debts at all cost to prevent the business from failing.

 

[Kvngsammy]

Bad debts are debts incurred from unscrupulous, deceptive elements that do business with you, you don't plan for them they just come.
While preparing your accounts there's no special name you'll tag those debts, you'll just put it under the loss column and move on if you can't retrieve it

 

[Ezekiel]

Bad debt occur as a result of familiarity or in ability to mount pressure,when this occurs it is always very difficult to get bad the money,so for any one oweing try as much as possible to get you money back before it becomes a bad debt

 

[nimzy]

Debt are not encourageble in any form or kind of business operation most especially kind of business of buying and selling. to me debt are money I which a customer owe you. some customers are very careless concerning the money the owe someone which they may not thing if refunding the money this kind of attitude really kill down business.

 

[Stnicholaz]

Many companies and businesses have closed down due to bad. Bad debt are money you can't or finding it difficult to get from your client or customers. Companies should try to shun bad debt.

 

[Suba]

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.

It's easier if you use the direct method by debiting baddebt expense which will be recorded in the income statement as an expense and crediting Account Receivable with the same amount on the balance sheet.

 

[nimzy]

To me I think bad debt is really a bad idea influencing any kind of business because with a lot of depth that is money owe by people to you it really cause down the rise of the business that leads to failure of the business because the business will not have sufficient fund in order to run it aaffairs.

 

[Shigobad20201]

Debtors can be from a group of people, from an individual , from a firm or a company, but i believe reporting to the law is a good way of dealing with bad debtors.

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.

 

[Ghost1]

Bad debt is bad for business. I mean the sole aim of business is profit unless u are running a non profit organization. Bad debt should be avoided

 

[Ralphjoe]

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.

For any company to be giving out crazy I don't think that there is any way that you can completely avoid bad debt record bad debt comes with any organisation that is in the business of giving out credit.

 

[nimzy]

debt is a money owing by someone to a particular company it can only be referred to as a bad debt when that person owing you refuses or failed to pay you as it is expected or plan.

 

[Setho]

Bad debts in a business can seriously impact the operations and also how the business will move forward if it is constantly using its profit to be servicing loans.

 

[Stnicholaz]

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.

Most times these bad debtors are usually friends and families who constantly use emotion blackmail to avoid not to pay their debts. That's very frustrating and annoying.

 

[Kunkun]

Not all debts in a business are actually bad debts, bad debts at the debts a business incurs that do not add any value at the end of the day to the business unlike good debts aimed at making improvements