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.



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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. February 26, 2020 https://payrollheaven.com/define/provision-for-doubtful-debts/.
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Provision For Doubtful Debts. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/provision-for-doubtful-debts/ (accessed: February 26, 2020).
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Provision For Doubtful Debts. PayrollHeaven.com. Retrieved February 26, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/provision-for-doubtful-debts/

Definition Sources


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

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

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