Where Is Bad Debt on a Financial Statement? | Bizfluent
For instance, suppose Hasty Hare had a customer, Ace Retail Shoes, who owed $1,800. After the account had gone 180 days past due, the lawyers for Ace notified Hasty Hare that Ace had declared bankruptcy, and the debt was uncollectible. Hasty Hare would record that $1,800 as a bad debt expense in its current monthly profit and loss statement.
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