09 BAD DEBTS

1. many times businesses and companies take huge loans
2. sometimes companies sell goods on credit expecting repayment
3. sometimes it may happen that the business does not receive money from the customer and it becomes uncollectable.
4. bad debts are the debts which are unlikely to be recovered.
5. In accounting, bad debts are considered an inevitable part of doing business on credit, and companies need to account for the possibility that not all customers will fulfill their payment obligations.