bad debt

Click a letter for the index

Or search the encyclopaedia:

 

 

Go

 

Bill or debt which has not been paid and is most unlikely to be paid. Bad debts eventually have to be ‘written off’ on the profit and loss account. They are counted as a provision and are deducted from the account.

One way for medium-sized companies to avoid the problem is to employ a factor, a company which specializes in collecting debts on behalf of other companies.

The blue star signifies the purity and honesty of the life of the country. The red star represents authority and law. Effective date: 4 June 1904. >>