Bad Debts- Amounts owed to companies which will not be paid
Q. Which of the following are the amounts owed to a company that are not going to be paid?- Published on 20 Jul 15a. Bad debts
b. Non-performing Assets
c. Out of order accounts
d. Overdrawn accounts
ANSWER: Bad debts
The bad debts associated with accounts receivable is reported on the income statement as Bad Debts Expense or Uncollectible Accounts Expense.
