Bad Debt Expense

Bad Debt Expense

An item on a balance sheet indicating debt from a credit sale that the creditor is unable to collect. Debt becomes a bad debt expense when the creditor has made all reasonable efforts to collect the debt but has been unable to do so. Many companies set aside an allowance for bad debts to pay for bad debt expenses. While this helps, bad debt expenses still deprive a company of cash flow that is ultimately necessary to keep it in business.
References in periodicals archive ?
Comparing bad debt expense each year to write-offs during that year is one measure of the accuracy of bad debt estimates.
Lines 30-32 disclose depletion, depreciation and bad debt expense.
5 million in bad debt expense related to Kmart's reorganization filing.
Q My credit report shows that a creditor has written off what I owe them as a bad debt expense.
The losses for the 1993 fiscal fourth quarter include a non-recurring charge of $183,435 for restructuring and bad debt expense.
15, 2011, healthcare provider entities were required to adopt an Accounting Standards Update (ASU) that results in bad debt expense being recorded as a reduction to net revenue, rather than an operating expense.
Further, NHRMC's bad debt expense continues to increase as bad debts totaled $83.
Although volumes weakened during the quarter, bad debt expense remained relatively stable.
In fact, providers reported continued favorable trends in volumes, pricing and bad debt expense.
In addition, the sharp increase in bad debt expense that some industry observers had feared would result from a weakening economy was not realized during the first quarter.
hospital industry saw a continuation of the same themes that affected it throughout 2007 -- high levels of bad debt expense, weak volumes, and strong pricing, according to a new report by Fitch Ratings.
CHICAGO -- Bad debt expense and stagnant volumes continued to challenge the U.