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They probably aren't. Until they are received as taxable income, which probably didn't happen if they weren't paid...they can't be deducted as a loss. No tax basis to deduct. Sure, you can report them and then deduct them...but that really doesn't get you anywhere. (You do not get a tax deduction for money you did not make).
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Do you credit allowance for bad debt and debit bad debt expense?
you smell
Why doubtful debt is treated as an asset and Bad debt as an expense?
Doubtful debt is treated as asset because it is reduction in accounts receivable before it happen and at actual bad debt time it is offset against bad debt account. Bad debt is expense because this is the loss which business incurred due to bankruptcy or not receiving money from debtors.
What is a bad debt?
A bad debt is a debt which cannot be recovered from the debtor, either because he does not have the money to pay it or because he cannot be found and/or forced to pay.
Allowance for Bad Debts vs bad debt expense?
An allowance for bad debt is essentially a reduction in a bank's accounts receivable. The allowance for bad debt equals the amount of the banks loans that it does not expect to collect.
When is bad debt removed from accounts receviable?
When bad debt amount is recovered then it can be removed from accounts receivable as receivables.
What happens if you owe over 10000 dollars to an insurance company due to a judgment?
It's the same as any other unpaid debt. The company may sue you in court which could result in liens or attachments to your property or your wages. They may turn it over to a collection agency for further collections activity. Of course it will almost definitely go on your credit report as a bad unpaid debt.
Does an unpaid medical bill look bad on your credit report Since it was an emergency?
Yes ... the credit bureau only "sees" unpaid debt ... it does not determine who is owed or how the unpaid debt was incurred. You should be writing to the credit bureau's and explain the situation - they may drop the reported unpaid bill, but will not forgive the debt still owed ... that still needs to be paid back to the medical institution as soon as possible, as they are a business and rely upon money (income) to pay their bills and staff.
You owe a debt in Texas a collector from Texas wants to garnish your wages in Mississippi Can he do that?
In theory, yes, but it would be expensive for him to do it. Depends how much you owe and how bad they want it.
Does R.I. state law allow a creditor to garnish wages if you are foreclosed on ?
RI law allows for up to 25% of your wages after taxes, SS, etc are taken out to be garnished for unpaid debts. If you are forclosed on and in a bad financial situation you can reply to the writ you should have received when the creditors began garnishing your wages and the court can review your status. i.e. you probably need a lawyer on this one....
Is having debt good or bad?
To be in debt is usually considered bad.
How is bad debt different from good debt?
Good debt is an investment helps to build credit. Bad debt is the amount that the entity has lost.
Do you credit allowance for bad debt and debit bad debt expense?
you smell
Non business bad debt personal loan?
It's a personal bad debt
Bad debt on a balance sheet?
No, bad debt is an expense and is reflected on the P&L Statement.
Why doubtful debt is treated as an asset and Bad debt as an expense?
Doubtful debt is treated as asset because it is reduction in accounts receivable before it happen and at actual bad debt time it is offset against bad debt account. Bad debt is expense because this is the loss which business incurred due to bankruptcy or not receiving money from debtors.
Why does walmart have bad wages?
Because people are prepared to work for these wages. Supply and demand!
How long after bad debt can it be collected?
A bad debt can be collected on indefinitely. The debt is owed until it is paid or written off by the creditor or individual.
