___________ are those debtors who may pay but business firm isi not sure about the collection of full amount from them.

Good Debts

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Bad Debts

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Doubtful Debts

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Solution

The correct option is A Doubtful Debts
Option C is correct. A debtor is a person that owes money to business due to sale of goods or services on credit. Doubtful debts are those debtors that might become a bad debt in future.
Business is not sure about the collection of amount. In this case, a reserve is created known as reserve for doubtful debts.

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Similar questions

A business firm creates provisions against doubtful debt under which of the following conventions

5 %

2 %

10 %

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