UK Accounting Glossary
It is known that a credit customer (debtor) is unable to pay the amount due.
Bad debt is a loss that a company incurs when credit that has been extended to customers becomes worthless, either because the debtor is bankrupt, has financial problems or because it can’t be collected.
Bad debt has significantly and negatively impacted the bank’s profits this year.
The Auditors concluded that the volume of bad debt was wholly unacceptable and could be financially disastrous.
There is good debt and then there is bad debt.
The agency is excellent at recovering bad debt.
The company has had to allow for a £3 million provision for bad debt.
If they had acted more cautiously in the first instance; the banks would have had less bad debt to declare.
It only has a few subsidiaries to shunt bad debt into.
Profits in 1994 were bolstered by a significant fall in bad debt provisions to £372 million.
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This glossary post was last updated: 23rd December 2018.