If a debt cannot be collected, a creditor may wish to remove it from the books by writing it off. It is common for businesses to maintain a reserve or provision for doubtful accounts against which bad debts are charged (bad debt reserve). creditor may wish to remove it from the books by writing it off. It is common for businesses to maintain a reserve or provision for doubtful accounts against which bad debts are charged (bad debt reserve).

A person, business or governmental agency with a claim against a debtor or debtor's business. claim against a debtor or debtor 's business.

A right to payment or other equitable remedy in the event of a breach of contract.

or business entity that owes money.

Uncollectible accounts that are encountered due to poor credit decisions, aggressive credit policy or an unpredictable event.

A claim against a customer for services rendered or goods sold on credit.

The privilege of buying goods, services or borrowing money in return for a promise of future payment.

A medium of exchange; coined or stamped currency.

Money set aside for accounting purposes to protect any depreciation or losses in asset values for a specific purpose.

A right to payment or other equitable remedy in the event of a breach of contract.

or business entity that owes money.

Relates to the judicial means or court procedures by which legal and equitable rights are enforced.