Why to calculate Bad Debt Expense of year?
All businessmen/ businesswomen must have to calculate their Bad Debt Expense to know their loss or profit of the year. One of factors that business account in calculating their earnings is portion of their collectibles that will not be paid. This number for a company is call bad debt expense. For every dollar that a company is owe, they must estimate an amount that will not be collected. This could be for a variety of reasons. In many businesses, their customers are other businesses. A supplier might sell an item…
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