Bad debts are regarded as _________ for a firm.

Loss

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Profit

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Expense

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Income

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Solution

The correct option is A Loss
Bad debt means a debt or debtor considered bad for recovery. If a debt is cobsidered that it may not be recovered at all and there is no security available in the account it is considered as loss asset and is written off in books of account.

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Similar questions

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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