What does bad debt mean?

Looking for the meaning or definition of the word bad debt? Here's what it means.

Noun (business, accounting) A debt which cannot be recovered from the debtor, either because the debtor lacks the money to pay or because the debtor cannot be found and/or forced to pay. Find more words! 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As a result, conditions causing fluctuations in the aging of customer accounts will directly impact the reported amount of bad debt expense. The recovery of any bad debt claimed as a capital loss will be treated as a capital gain in the year of recovery. Although analysts are bullish on the banks, it would be all too easy for bad debt jitters to blot their copy books. Under Government supervision, banks will set guidelines to deal with financially crippled borrowers and get rid of their bad debt. That's one reason the industry is stepping up efforts to manage the bad debt. See Also What is another word for bad debt? What is the opposite of bad debt? Sentences with the word bad debt Words that rhyme with bad debt What is the plural of bad debt? Nearby Definitions Baddams bad company bad checks bad check bad cess bad breath bad debts badded baddeleyite baddeleyites badder badderlocks