The Estimation of Bad Debts Expense Relates to the Write-Off

question 130

True/False

The estimation of bad debts expense relates to the write-off of uncollectible accounts.

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Definitions:

Debtor

A debtor is an individual or entity that owes a debt to another party, usually a sum of money.

Attaches

The process or moment when a legal right, interest, or lien is officially joined or connected to property or assets.

Secured Interest

A legal claim or lien on assets which is established to secure payment or performance of an obligation.

Default

Failure to fulfill a legal obligation, especially failing to make a required payment or perform a contractual duty.