Bad debt expense is ____.
A) the cost of sending repeat bills to a non-paying customer
B) the cost of hiring a collection agency
C) the amount of revenue due that is written off as uncollectible
D) the penalties paid for making late payments on loans or bills

Question

Quizplus · Accepted Answer

Bad debt expense represents the amount of revenue that is recognized as uncollectible and is written off, reflecting the loss to the company from extending credit that will not be repaid.

Bad Debt Expense Is ____