Register now or log in to join your professional community.
Provision for doubtful debt means which a business or individual is unlikely to be able to collect.
And a bad debt provision is a reserve against the future recognition of certain accounts receivable as being uncollectable.
Thanks for invitation
The provision for bad debts is a provision made for specific bad debts. While the provision for doubtful debts is a contra debtors account and it shows the estimated total of future bad debts.