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.

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What is data validation?

Data Validation (definition)

Data validation means checking the accuracy and quality of data before importing or using it. In the case of data migration, data should be validated before and after the import to check for accuracy. One method may be to run the same report and verify that the customer received the same values.

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