226k views
3 votes
Differentiate between bad debt and doubtful debt​

1 Answer

14 votes

answer and explanation :

A bad debt is a specifically-identified account receivable that will not be paid and so should be written off at once, while a doubtful debt is one that may become a bad debt in the future and which it may be necessary to create an allowance for doubtful accounts.

User Maxim Razin
by
5.5k points