What is a Bad Debt Expense?

A bad debt expense is recorded when a consumer is unable to pay an outstanding debt due to bankruptcy or other financial difficulties. It is particularly common for businesses that operate based on credit. For example, if they offer payment terms of 15 days and they have a customer who is unable, or unwilling, to pay you back. Bad debt expense can be calculated using the direct write-off technique, which means the invoice amount is charged directly to bad debt expenditure and deducted from accounts receivable. Or, with the allowance method, where bad debts are anticipated even before they occur, and an allowance is established. You must record the expense in your company's accounting records to deduct the debt from your company's accounts after it has been collected.

Choose your... Country

FINAL DAYS

50% off

for 3 months

FINAL DAYSStart fresh this new year with QuickBooks Online

Buy now

DON'T MISS OUT

Buy now and get 50% off for 3 months Claim offer

DON'T MISS OUT

Claim offer

SALE

Buy now and
save 50% off today See plans & pricing

SALE

See plans & pricing

What is a data import?

Data Import (definition)

The import of data is the automated or semi-automated input of data into a software application, such as QBO. Customers can easily import several lists into QBO using CSV file spreadsheets.

Go Back to Glossary

Accountants

Choosing the Right Data Migration Method: Data Conversion vs Data Migration

Accountants

Educating Clients on QuickBooks Online: How to Build a Training Program for Clients

A laptop computer sitting on top of a desk.

Accounting

How to Manage your Small Business Accounting in 7 Steps

Ready to run your business better with QuickBooks Online?

Buy now

Home>Glossary>Data Import

Hello!

Speak with a sales expert

Available 24 hours, Monday - Sunday

All our agents are currently busy

Need product support?

Visit our support hub