What is "bad debt" ?
It's an idiom meaning "a debt that cannot be paid ". I am at a loss whether it means a person is extricated from paying the debt Or he deliberately doesn't want to payback the debt Or the debt is so huge for the debtor that he can't payback.

Thanks

Question

What is "bad debt" ?
It's an idiom meaning "a debt that cannot be paid ". I am at a loss whether it means a person is extricated from paying the debt Or he deliberately doesn't want to payback the debt Or the debt is so huge for the debtor that he can't payback.

Thanks

Answer

"bad debt" has a specialist meaning in accounting.  Often a seller gives a buyer a deadline to pay a bill or invoice.  Realistically, the seller doesn't usually consider it a big problem if the buyer pays a bit late. But at some point in time and/or in line with certain accounting criteria, the seller will define the debt as a "bad debt" - one which realistically will never be paid. "Bad debt" appears on accounting documentation.

Answer

Hello basit,
the first option, that is extrication, is not correct. but last two options are definitely correct.

Answers · 3

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