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In finance, bad debt, occasionally called uncollectible accounts expense, is a monetary amount owed to a creditor that is unlikely to be paid and for which the creditor is not willing to take action to collect for various reasons, often due to the debtor not having the money to pay, for example due to a company going into liquidation or insolvency.
Fixed Expenses vs. Variable Expenses: Quick Take. If you want to make sure you have enough money for necessities and unplanned expenses, you must create a budget. For that, learning the difference ...
A more specific definition in common use is an account with a balance that is the opposite of the normal balance (Dr/Cr) for that section of the general ledger. [34] An example is an office coffee fund: Expense "Coffee" (Dr) may be immediately followed by "Coffee – employee contributions" (Cr). [35]
Good debt is preferable because it builds value, but there are cases where bad debt is the best choice. For instance, using a loan to buy a reliable car to get you to and from work is a good use ...
A separate term for the aggregation of expenses and losses does not exist. Contra-accounts are accounts with negative balances that offset other balance sheet accounts. Examples are accumulated depreciation (offset against fixed assets), and the allowance for bad debts (offset against accounts receivable). Deferred interest is also offset ...
Credit card debt is typically the most expensive debt that you can carry. Interest rates on credit cards are often in the double digits and can be over 20%, even for those with good credit.
the "bad debt expense" associated with portion of the receivables that the seller expects will remain unpaid and uncollectable, the "factor's holdback receivable" amount to cover merchandise returns , and (e) any additional " loss " or " gain " the seller must attribute to the sale of the receivables .
Secured debt is debt that is backed by an asset, like a car or a house. Should you default on the loan or debt repayment, the creditor can seize this asset instead of opening a debt collection on ...