Communiquez avec les autres et partagez vos connaissances professionnelles

Inscrivez-vous ou connectez-vous pour rejoindre votre communauté professionnelle.

Suivre

What are the differences between provision for bad debts and provision for doubtful debts?

user-image
Question ajoutée par Tashi Gayleg
Date de publication: 2016/03/28
Mohammed  Mohsin
par Mohammed Mohsin , Senior Executive Officer , Alpha Islami Life Insurance Ltd.

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.

Frank Mwansa
par Frank Mwansa , ACCOUNTING LECTURER , FREELANCER

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.

More Questions Like This