Bad Debt Expense

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Dictionary Says

Definition of 'Bad Debt Expense'

An entry found on a business's income statement that represents the amount of noncollectable accounts receivable that occurs in a given period. In terms of accounting entries, every time an amount increases bad debt expense, an equivalent amount is credited to the business's allowance for bad debts.

Investopedia Says

Investopedia explains 'Bad Debt Expense'

Often times, bad debt expenses occur as a result of a customer being unable to fulfill its obligation to pay an outstanding debt, due to bankruptcy or other financial problems. However, this does not always necessarily mean that the entire amount owed will be written off. Bankruptcy proceedings may be able to provide some recourse and remove some of the bad debt expense.
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'Bad Debt Expense'

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    ... The credit extending practices of any company represents the trade-offs between
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    ... uninsured. Providing insurance to the 32 million uninsured in the US should
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  • The Private Label Credit Card Game

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    ... In its second quarter 10-Q, the company revealed that its bad debt expense in the
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  • Eagle Bulk Shipping Dealing with Choppy Waters

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    ... The quarterly loss reflects an allowance for bad debt expense of $6.6 million due
    to the bankruptcy filing of one the company's charterers, Korea Line. ...

  • The Best Stocks Of 2009

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    ... began 2009 with many investors questioning the its ability to deal with the credit
    crunch and recession as the company's bad debt expense started to soar. ...

  • Apollo Tries To Reload

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    ... A self-pay education environment isn't "game over," but it would be a dramatic
    shift and bad debt expense would become a very relevant issue. ...

  • EVA: Calculating NOPAT | Investopedia

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    ... The process of capitalizing an expense is a two-way mirror: we must match an income
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  • Buying Opportunity: Colleges In The Crosshairs

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    ... earnings per share increased from 28 cents to 38 cents, a 36% jump creating a tiny
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  • CFA Level 1 Study Guide - Assets - Accounting for Credit ...

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    ... 9.11 Accounting For Long-Term Liabilities; 9.12 Post-Retirement Obligations;
    9.13 Effects Of Debt Issuance; 9.14 Implications Of Debt ...

  • Apollo Off Key For Growth Investors

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    ... On a more positive note, bad debt expense was down on both a sequential and annual
    basis, and the company was in pretty good shape relative to government ...

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