Amount which is not recoverable from customer is known as ___________.

debts

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debtor

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bad debts

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doubtful debts

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Solution

The correct option is A bad debts
Bad debts are those items of charge on the profits of the company, that indicate the sums of money that could not be recovered from a debtor, during the year.
These are the trade receivables that will not be collected.

Suggest Corrections

Similar questions

When you have a reasonable doubt that the debt is not fully/partly recoverable, then you make a _______

A firm has not recorded the bad debts by mistake. Which of the following is the effect of bad debts omission?

A. Bad Debts A/c To Consignment Debtors A/c	Dr.
B. Bad Debts A/c To Profit & Loss A/c	Dr.
C. Bad Debts A/c To Consignee A/c	Dr.
D. No entry is required to be passed

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