Define: Provision For Doubtful Debts

UK Accounting Glossary

Definition: Provision For Doubtful Debts


Quick Summary of Provision For Doubtful Debts


An estimate of the risk of not collecting full payment from credit customers, reported as a deduction from trade receivables (debtors) in the balance sheet.



What is the dictionary definition of Provision For Doubtful Debts?

Dictionary Definition



Full Definition of Provision For Doubtful Debts




Examples of Provision For Doubtful Debts in a sentence


The actual amount of noncollectable receivable is written off as an expense from the provision for doubtful accounts.
They are increasing by £2.5 million their allowance for doubtful accounts to £3.7 million.
The portion of the account receivable that is estimated to be non collectable is set aside in a contra-asset account called “Provision for doubtful debts”.
On 29th March, 2018, the company announced an adjustment related to an increase in the estimate for its provision for doubtful accounts and a restatement for a change in revenue recognition method for its culinary and healthcare internships.



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Provision For Doubtful Debts. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/provision-for-doubtful-debts/ (accessed: July 17, 2019).
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Provision For Doubtful Debts. PayrollHeaven.com. Retrieved July 17, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/provision-for-doubtful-debts/

Definition Sources


Definitions for Provision For Doubtful Debts are sourced/syndicated from:

  • Oxford Dictionary Of Economics
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 23rd December 2018.