Doubtful debt

A doubtful debt is a debtor balance where there is some uncertainty as to whether or not it will be settled, and for which there is a possibility that it may eventually prove to be bad. A doubtful debt provision may be created for such a debt by charging it as an expense to the profit and loss account. (See also bad debts)


reference: Business Studies / Accounting. Accounts & Finance Glossary. Jim Riley BA(Hons) MBA FCA // tutor2u