A credit sale of a business where the revenue is not collected due to the customer not paying is a bad debt.

Name: A credit sale of a business where the revenue is not collected due to the customer not paying is a bad debt.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A bad debt occurs when a business has made a sale on credit and has not received the payment from the customer. This is considered a loss for the business and is recorded as a bad debt expense.

A Credit Sale of a Business Where the Revenue Is