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The simple answer is "as soon as the creditor or collection company reports it"
The problem is that they have very little to no incentive to rush that reporting. A good tactic would be to get a time frame for the reporting from the creditor in writing if possible before giving them any money.
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∙ 14y ago
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What does a charge off with a zero balance mean?
A charge off with a zero balance means that a creditor has written off your account as a bad debt. This will show up as a negative mark on your credit report.
Bad debt on a balance sheet?
No, bad debt is an expense and is reflected on the P&L Statement.
When is Bad debt expense removed from the balance sheet?
Bad Debt Expense does not appear on the balance sheet. It is only on the income statement. Allowance for Uncollectible Accounts does appear on the balance sheet.
Is bad debts account a balance sheet item or income statement?
It depends on how you have already treated the bad debt in the accounts, if you've already either written the debt off or fully provided for it then the recovery of the debt will be a P&L transaction (income statement)
Do bad debt expense has a debit balance?
yes
When there is an allowance for bad debts on the balance sheet the journal entry for writing off an account receivable is?
debit bad debtCredit allowance for bad debt
Is provision for doubtful debt a current liability?
Provision for doubtful debt is current asset which is created as a reduction in accounts receivable balance and which is adjusted at actual bad debt.
What does a 0 balance charge off mean?
A 0 balance charge off means that the debt company has given up trying to collect the debt. It may sound good, but the effect on the credit rating is very bad.
How does the bad-debt expense appear on the income statement?
Yes it is. There's a provision for bad debt expense in the income statement and that same amount gets either added to the reserve for doubtful accounts on the balance sheet or reduces the accounts receivable account, on the balance sheet. That depends on whether its a reserve for future write-offs or a write off of a certain customer balance.
Are the medical bills on credit report removed after clearing the bill?
Removing or say that information would be removed for repayment of a debt is not legal. If your bad medical debt was reported to your credit, then your payment and the status of the debt would be updated by the collections agency typically within 30-60 days. It will still appear on your credit but as a "paid" or "settled in full" status and zero balance due.
What happens to a vehicle when a balance of 447.00 is left owed on it and it is being sent to recovery service for collections will they work with you on the remaining balance?
In the world of bad debt, everything is negotiable.
What entries are required to write off bed debt?
A bad debt occures when a customer doesn't pay to the company, the company has to consider this as an expense as payment will not be received, so:Debit the Bad Debt Expense and take this to Income Statement expenses(overheads).Credit the Receivables In the balance Sheet as bad debts means customer will not pay, so you are decreasing your receivable asset which normally is a debit becaused of being an asset but to decrease the asset, do the opposite, i.e. Credit it.Debit: Bad Debt Expense (Income Statement)Credit: Receivables (Balance Sheet)
