According to The Entrepreneur's Guide to Writing Business Plans and Proposals that can be found in Google books, bad debt expense is a variable expense because the amount of bad debt depends on the amount of sales.
No, bad debt is an expense and is reflected on the P&L Statement.
Accounts that are unlikely to be paid and are treated as loss is considered as bad debt.Provision for Bad Debts can also be the income statement accountalso known as Bad Debt Expense or Noncollectable Account Expense. In this situation, the Provision for Bad Debts reports the credit losses that refer to the period shown on the income statement.
The bad debt is recorded against the asset, which is the debtors control account, or account recievable, for example company A is owed $1000 by company B, during the year, company B approaches company A and states that it is going out of business and can only pay them $600, therefore the bad debt is $400 Credit the debtors account of company b with $400 and debit bad debt expense $400
A coupon rate is not a good estimate of a firm's cost of debt, as it is only a reflection of the firm's cost of debt when bonds were issued, not the current cost of debt. It's not representative of the yield in the current market.
Good debt is an investment helps to build credit. Bad debt is the amount that the entity has lost.
No. Because it is calculated as a percentage of accounts receivable or net income it will be variable.
Bad debt expense is a product cost, depends directly on sales.
credit the account receivable and debit the bad debt expense.
Bad debt is expense to reduce the amount of accounts receivable not recoverable from customers.
you smell
Yes.
Admin expense
Uncollectible Accounts Expense.
No, bad debt is an expense and is reflected on the P&L Statement.
Debit to bad debt expense, credit to allowance for doubtful accounts. The figure would be your yearly estimate.
yes
Doubtful debt is treated as asset because it is reduction in accounts receivable before it happen and at actual bad debt time it is offset against bad debt account. Bad debt is expense because this is the loss which business incurred due to bankruptcy or not receiving money from debtors.