Final answer:
The term 'doubtful accounts expense' is another way to refer to bad debts expense, which represents the estimated losses from loans or receivables that cannot be collected.
Step-by-step explanation:
Another term for bad debts expense is doubtful accounts expense. This is an estimated expense that a bank or a company records to account for loans or receivables that are likely not going to be repaid. The bad debts expense represents potential losses for the bank and is considered an essential component of financial risk management.
For instance, if a bank like the Safe and Secure Bank witnesses a significant number of loan defaults resulting in its loans decreasing in value from $5 million to $3 million, it will record a higher bad debts expense, which will reflect negatively on its assets and possibly lead to a negative net worth.