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bad debts expense

(Dictionary)

Author:
Harold Averkamp, CPA, MBA

Definition

This is an operating expense resulting from making sales on credit and not collecting the customers’ entire accounts receivable balances.

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  • Debits and Credits
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  • Accounts Receivable and Bad Debts Expense
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About the Author

Harold Averkamp

For the past 52 years, Harold Averkamp (CPA, MBA) has
worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.

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