What is the difference between doubtful debts and bad debt expense?

Asked by Patrick Kennedy on March 22nd, 2012 @ 1:33 a.m.
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Doubtful debts is a provision made on the balance sheet for receivables that will potentially not be received from debtors.

Bad debts expense is the expense recognised on the profit & loss for receivables that have been written off the accounts receivables accounts. That is the company have deemed that the receivable cannot retrieved from the debtor and therefore will not try and get the monies back from the debtor.
Answered by Melissa Leong on March 26th, 2012 @ 5:24 p.m.