doubtful debts

doubtful debts

amounts owed to a company by customers or borrowers which may possibly not be paid because the customers or borrowers are in financial difficulties. In anticipation that many doubtful debts will eventually become BAD DEBTS, a company may make a PROVISION against profits for some doubtful debts. See CREDIT CONTROL.
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In the accompanying commentary we learnt, ''Selling and administrative expenses increased in the period compared to the prior year, mainly as a consequence of increased provisions for doubtful debts in the FMCG business.
Banksias financial reports for the financial years ending 30 June 2011 and 30 June 2012, and its half-year financial report for the half year ending 31 December 2011, did not comply with the relevant accounting standards, nor did they give a true and fair view of the financial position and performance of Banksia given the amount disclosed for the provision of bad and doubtful debts was inadequate.
The volume of provisions made by banks to deal with bad and doubtful debts reached EGP 109.
It does not have any overdue or doubtful debts due to strong credit mechanism.
Nepra did not allow K-Electric any provision for including the cost of doubtful debts in tariff, but allowed the company to write off bad debts at the rate of 1.
Moreover, disallowance on account of Provision for doubtful debts has also been reduced to the tune of Rs.
Rise was attributable to higher salaries and wages expense, outsource job contractor charges and provision for doubtful debts beside normal impact of inflation in Pakistan.
It said that higher charges for bad and doubtful debts and a mining downturn had pushed down profits.
These improvements were bolstered by better assets quality, lower provisions for bad and doubtful debts and reduced losses from the disposal of foreclosed assets, he said.
In 2013, provisions for doubtful debts stood at $25.
1 million, and given that provisions for doubtful debts was e1/41.
Furthermore, the company has taken additional reserves valued at BD70,000 towards provision for bad and doubtful debts.