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Expline bad debts? Expline a provision for doubtful debts? Please write very briefly

Expline bad debts?
Expline a provision for doubtful debts?
Please write very briefly

Business   Accounting   
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Answer #1
Bad debts - Debts that become irrecoverable are called bad debts. A debt may become bad partially or fully. In other words, bad debts is the amount of accounts receivable that will not be collected. The bad debts is reported as Bad Debts Expenses or Uncollectible Accounts Expense in the Income Statement.
Provision for Doubtul Debts - is the estimated amount of bad debt or the amount irrecoverable in the future of the current accounts receivables. It is based on the Accrual Basis accounting, so that expense is recorded or recognized for the bad debts as soon as credit sales are made, rather than waiting for months to know how much amount will be uncollectible.  
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