Provision for Bad Debts
/ˌprəʊˈvɪʒən fər bæd dɛts/
Definitions
- (n.) An accounting entry made by a company to cover estimated losses from uncollectible debts.
The company recorded a provision for bad debts to anticipate non-payment by customers.
Forms
- provision for bad debts
- provisions for bad debts
Related terms
See also
Commentary
This term is primarily used in financial law and accounting within legal contexts, especially in credit and bankruptcy matters.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.