Unformatted text preview: Uncollectible Accounts Granting credit entails both costs and beneﬁts: — The main benefit is the boost in sales and profit that a
company generates when it extends credit — The most significant cost is uncollectible accounts or
bad debts—receivables that some credit customers are either unable or unwilling to pay — The cost of granting credit that arises from
uncollectible accounts is called bad debts expense ...
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- Fall '07
- Financial Accounting