After various attempts to collect accounts receivable, bad debt is considered an expense and reduces profits. In the balance sheet of accounts receivable credit with bad debt expence, companies can use the direct method or the reserve method.
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Thanks for this definition. I actually came to this platform solely for money but gradually, I can say I have learnt one or two things from here. Mostly topics on forex and crypto currency trading.Bad debt is used to describe a situation where debtors can not pay back their loan or money for goods or services rendered to them in good fasen fingered as a culprit in pulling down small, medium and even large scale businesses in every part of the world.
If a small or medium scale business is hit by bad debt
Small businesses are very easy to start and manage because they are set up with a realistic budget that wouldn't be too difficult for you to access and keep in check.I don't think a mini business can be hit by bad debt, and if a mini business is being hit by bad dept I suggest the owner should get a loan in other to help the business financial
I have come to realize and understand that there is no way you would never be selling your business products and services on credit to some people. You only have to limit it.I think the best solution for the debt it to give the person time when to pay the debt back, because selling in credit in your business will bring down the business.
The best solution to bad debts in small business is to allow the customers know that you don't give credit and you don't sell on credit. This will save your business stress
The best solution to bad dept, is never give dept, make it known to your customers that you do not give dept, and they will know and put it to work.I think the best solution for the debt it to give the person time when to pay the debt back, because selling in credit in your business will bring down the business.
I think the only way to pay back small loan using for business,is to be more active on the business doing and make sure you get more customers to the business and make sure you give them the good services ever and lastly make sure you got all the outstanding payment on time as well.Bad debt is used to describe a situation where debtors can not pay back their loan or money for goods or services rendered to them in good fasen fingered as a culprit in pulling down small, medium and even large scale businesses in every part of the world.
If a small or medium scale business is hit by bad debt