Doubtful debts

A doubtful debt is an amount owing to the business concerning which there is some doubt as to its collectability.

A doubtful debt is one about which there is some cause for concern but which is not yet definitely irrecoverable. Therefore, although it is prudent immediately to recognise the possible expense of not collecting the debt in the income statement, it would also be wise to keep the original debt in the accounts in case the debtor does in fact pay up.

The double entry of doubtful debt is:

Related posts:

1. Bad debts recovery
2. The difference between a bad debt written off and a doubtful debt allowance
3. Allowance for doubtful debt
4. Bad debt in the income statement
5. Bad debt accounting