What are bad debts and bad debts .

Bad debts are different from bad debts.

Doubtful debts are receivables that are overdue for many years and remain on the books, and are reflected as an asset on the balance sheet of each year, and there is no provision for bad debts.

Bad debts are receivables that cannot be recovered for various reasons, and are treated as actual bad debt losses. The Accounting System for Business Enterprises stipulates that an enterprise shall examine and analyze the possibility of recovery of accounts receivable at the end of the period and make provision for bad debts on a pro rata basis. When bad debts actually occur, the provision for bad debts is written off and the accounts receivable are written off at the same time.

When bad debts are accrued: Debit: Management expenses.

Credit: provision for bad debts.

When bad debts actually occur: debit: bad debt provisions.

Credit: Accounts receivable (other receivables).

When the actual bad debts are later recovered

Debit: Accounts receivable.

Credit: provision for bad debts.

At the same time, borrow: bank deposits.

Credit: Accounts receivable.

Unrecoverable current accounts that have neither increased nor decreased for more than three years, and which cannot be determined whether they can be recovered in the future, should be determined as doubtful debts; Current accounts that have been determined to be irrecoverable should be identified as bad debts.

Bad debts refer to: 1. Accounts receivable that cannot be recovered because the debtor has failed to fulfill its debt repayment obligations for more than three years.

2. Accounts receivable that cannot be recovered after the debtor's bankruptcy estate or estate is repaid due to bankruptcy or death.

Bad debts refer to: in principle, arrears of more than 3 months are called bad debts, (but each enterprise is different, depending on the situation, in short, it is shorter than 3 years.) ）

The process of bad debts in an enterprise is as follows:

Normal debts become bad debts for more than 3 months --- more than 3 years--- or the debtor goes bankrupt and dies.

Treatment: When accruing bad debts:

Borrow: Administrative expenses.

Credit: provision for bad debts.

When bad debts are actually incurred:

Debit: Provision for bad debts.

Credit: Accounts receivable (other receivables).

When the actual bad debts are later recovered

Debit: Accounts receivable.

Credit: provision for bad debts.

At the same time, borrow: bank deposits.

Credit: Accounts receivable.

Bad debts, also known as bad debts and bad debts, are the parts of accounts receivable that cannot be recovered. Classified as an expense class, it appears in the income statement. The reason for the occurrence of doubtful debts is that enterprises give credit facilities to customers in order to sell goods, so the occurrence of doubtful debts is an expense incurred in order to generate income.

Accounts receivable, overdue and not collected.

The other party is missing and has lost contact.

The other party has repeatedly failed to keep its promises.

Liquidation or bankruptcy of the other party.

The other party was sued by a third party for debts.

The other party borrows money from a loan shark.

Bad debts should be mainly used by financial institutions, and bad debts should mainly be used by enterprises.

Those who do not respond are called bad debts, and those who make mistakes and cannot make up for them are called bad debts.

stunned for a long time without reflection; Hopeless for a long time is called bad.

Bad debts, also known as "bad debts", refer to receivables that have passed the repayment period, cannot be contacted by the cardholder or cannot be recovered after being reminded, and have been in a sluggish state for a long time, and may become bad debts. To put it simply, a bad debt is an account that has not been paid off for a long time. In personal credit reporting, bad debts are a more serious manifestation than overdue.

the impact of doubtful debts; Generally speaking, if there is a bad debt, it means that the overdue amount has not been paid off for at least 2 years, and some people believe that one bad debt is equal to 50 overdue debts. Therefore, once the word "bad debt" appears on the credit report, it means that we have no chance of being connected with the bank's loan and credit card business. Moreover, if the bad debts are not dealt with, this credit record will follow us for a lifetime.

Only when the arrears are paid off and then the account is cancelled will the bad debt records be eliminated.

Expand your information; 1. Loans (electronic IOUs of credit) are simply and popularly understood, which is borrowing money that requires interest.

2. Lending is a form of credit activity in which banks or other financial institutions lend monetary funds at a certain interest rate and on the condition that they must be returned. Loans in a broad sense refer to the general term for loans, discounts, overdrafts and other lending funds. By lending money and monetary funds to the bank, the bank can meet the needs of the society for supplementary funds for expanding reproduction and promote economic development, and at the same time, the bank can also obtain interest income from loans and increase the bank's own accumulation.

3. As a leading consumer credit information service company in China, Lirong.com is the only enterprise in China that has launched an MBA student loan program, and its bridge student loans for MBA freshmen can help students easily solve the problem of tuition fees. MBA freshmen can apply for low-interest student loans ranging from 1 to 200,000 yuan on Lirong as long as they present the admission notice, and if they repay the loan with equal principal and interest, the monthly interest is even as low as that, which is lower than the interest of bank credit card installments. After enrolling in the school with the bridge student loan provided by Lirong.com, MBA students can apply for a national student loan with lower interest rate from the school, and then use the national low-interest loan to repay the tuition bridge fund in a lump sum.

In this way, as long as the borrower indicates the service at the time of application, that is, he or she can apply for a student loan in the form of interest first and principal before enrollment. The application period is preferably 6 months, and the national student loan applied for in September will generally not be approved until February of the following year, so that new MBA students do not need to worry about the high tuition fees to be paid in one lump sum, and can easily complete their studies through student loans.

4. Loan Limit: After the borrower provides a pledge, mortgage, third-party guarantee or certain credit qualification approved by CCB, the bank will verify the corresponding pledge amount, mortgage line, guarantee line or credit limit of the borrower. The pledge amount shall not exceed 90% of the face value of the pledge right certificate provided by the borrower; The mortgage amount shall not exceed 70% of the appraised value of the collateral; The credit limit and guarantee limit are determined based on the borrower's credit rating.

Bad debts are a serious breach of contract, if there are bad debts on personal credit, it means that some businesses have passed the repayment period, whether they can not be contacted or the user refuses to perform their responsibilities, and they are in a sluggish state for a long time, and may be recognized by the bank as bad debt receivables. In a word, bad debts are the result of failing to settle accounts in a timely manner, and refer to property that cannot be recovered because the other party does not pay it back. The main reason is that the credit card overdraft is overdue for a long time, and the overdue non-repayment is more serious, and it may even be recognized as a fraud, which will also affect the future application for housing loans and car loans.

In short, after the formation of bad debts, it has a great impact on your life.

Extended information: Consequences and treatment of bad debts:

1. Bad debts, which are a very serious overdue situation in the credit report, are far from being comparable to general overdue. As long as the word bad debt appears in your credit report, it means that you will be completely insulated from the banking business, such as applying for a credit card or applying for a loan, etc., no matter how you think about it, it is in vain, and if you don't deal with it, then the bad debt will follow you for a lifetime, and some bad debts will be retained even if the arrears are paid off, but the records on the credit report will still be retained.

2. General bad debt treatment: first of all, we must pay off the arrears, and pay attention not to pay more than a penny, and cancel the account after paying off the arrears. Unlike overdue credit cards, bad debts will not be eliminated if they are not cancelled, and the bad debts on your credit record will not be eliminated.

As for whether there will be no bad debts on the credit record after the account is closed, it also depends on the situation, some banks will update your credit record immediately after you cancel the account, and even classify your account into an account that is not overdue, but some banks are very bad even if the account is still bad after the account is closed.

3. Bad debts caused by overpayment, treatment methods, withdrawal of overpayment, and cancellation of accounts. In special circumstances, the bad debts caused by the annual fee of the second card are relatively simple to deal with, and the arrears can be paid off and the account can be cancelled. In these two cases, the bank will generally deal with the bad debts actively.

4. One of the more gratifying things about bad debts is that there is no longer any additional interest penalty interest on arrears, that is to say, if you have a bad debt of 1000, you only need to repay 1000, and no new interest penalty interest will be generated.

Bad. That is, the repayment period has expired, and it cannot be recovered after being reminded, and it has been in a sluggish state for a long time, which may become bad debts.

Target. Doubtful debts are receivables that are the result of failure to settle accounts in a timely manner, and also refer to financial accounts that cannot be recovered due to the other party's non-repayment. Simply put, it is an account that has not been paid off for a long time.

The impact of bad debts is:

The impact of bad debts is very serious, we must pay attention to bad debts, once we find that we have bad debts under our name, we must contact the relevant institutions in time, ask the reasons for the bad debts, and pay off the bad debts. Because in the credit report.

Medium non-performing debts are a very serious overdue situation, which is much more serious than is expected for a typical loan. Because the overdue time of bad debts is very long, the overdue amount is also very large. If there is a bad debt in the name, it means that it is with the bank.

It doesn't matter, you can't apply for credit business at the bank, for example, you can't apply for a credit card, you can't apply for a loan.

Bad debts are a very serious overdue situation in the credit report, and the severity is far from being comparable to the general overdue. As long as the word bad debt appears in the credit report, it means that it will be completely insulated from the banking business, such as applying for a credit card or applying for a loan, etc., no matter how you think about it, it is in vain, and if you don't deal with it, then the bad debt will follow for a lifetime, and some bad debts will be retained even if the arrears are paid off, but the records on the credit report will still be retained. The following situations can be identified as bad debts.

1. The borrower and the guarantor shall be declared bankrupt, closed, dissolved or revoked in accordance with the law, and their legal personality shall be terminated.

Claims that cannot be recovered by a financial enterprise after recovering from the borrower and the guarantor;

2. The borrower dies or is declared missing in accordance with the provisions of the law.

or in the event of death, the financial enterprise has failed to recover its claims after paying off its property or estate in accordance with the law and recovering the guarantor;

3. The borrower suffers from a major natural disaster.

or in an accident, the loss is huge and cannot be compensated by insurance, or after being compensated by insurance, it is truly unable to repay part or all of the debts, and the financial enterprise fails to recover its debts after paying off its property and recovering from the guarantor;

4. Although the borrower and the guarantor have not been declared bankrupt, closed, dissolved or revoked in accordance with the law, they have completely ceased their business activities and have been approved by the administrative departments for industry and commerce at or above the county level.

Debts that cannot be recovered after the financial enterprise has cancelled or revoked its business license in accordance with the law, and the financial enterprise has failed to recover the creditor's rights after recovering the borrower and the guarantor;

5. Although the borrower and the guarantor have not been declared bankrupt, closed, dissolved or revoked in accordance with the law, but have completely ceased business activities or their whereabouts are unknown, have not carried out industrial and commercial registration or have not participated in the annual inspection of industry and commerce for more than two consecutive years, and the financial enterprise has failed to recover the creditor's rights after recovering the borrower and the guarantor.

In practice, doubtful debts generally refer to unrecoverable current accounts that have neither increased nor decreased for more than three years, and there is no certainty that they will be in the future.

No, it can be recovered. Bad debts refer to receivables that cannot be recovered or have little chance of being recovered.

Bad debts, dedicated to China's financial enterprises.

Bad debts must be judged in accordance with the provisions of the "Accounting System for Business Enterprises".

The risk of bad debts is less than that of bad debts because there is a possibility of recovery of bad debts.

The loss caused by the occurrence of bad debts and bad debts is the loss of bad debts and bad debts. However, from the perspective of the provisions of the laws and regulations, there are certain differences in the meaning of tax and accounting-related losses and their recognition (recognition).

In terms of taxation, the terminology in the accounting standards is followed, and various titles with differences in sub-industry systems are listed for the sake of completeness, namely.

Bad debt losses mainly refer to the loss of creditor's rights (loan principal and interest receivable) and equity losses of financial enterprises, while the loss of bad debts mainly refers to the loss of receivables of non-financial enterprises and the general business losses of empty financing enterprises.

From the principle of tax law, whether it is a bad debt loss or a bad debt loss in accounting, it needs to be measured according to the tax law standards, and only those that meet the principle of tax law deduction can be deducted.

As for the conceptual distinction between bad debt loss and bad debt loss, it is not important. If the debtor is declared bankrupt or revoked in accordance with the law, and its remaining property is indeed insufficient to pay off the accounts receivable, the enterprise can be deducted before tax if it is recognized as a loss of bad debts or bad debts according to the degree of consolidation of the family, and relevant evidence and materials are obtained.

However, the loss provision items accrued by the enterprise cannot be deducted before tax without verification.

Legal analysis: Bad debts refer to the non-performing assets of banks, mainly referring to non-performing loans. That is, the loan issued by the bank cannot recover the principal and interest at a pre-agreed term and interest rate.

Non-performing assets mainly refer to non-performing loans, including overdue loans (loans that have not been repaid by the end of the term), sluggish loans (loans that are overdue for more than two years) and doubtful loans (loans that need to be written off and cannot be recovered). Others include real estate portfolios such as real estate. Bad debts may or may not be recovered, and once they are confirmed as bad debts, they must be unrecoverable.

1. Accounts receivable that cannot be recovered because the debtor has failed to perform the debt repayment obligation for more than three years; 2. Accounts receivable that cannot be recovered after the debtor's bankruptcy or death is bankrupt or the estate is repaid. In principle, arrears of more than 3 months are called bad debts, (but each enterprise is different, depending on the situation, in short, it is shorter than 3 years.) The process of bad debts in the enterprise is like this

Normal debts become bad debts for more than 3 months; Bad debts for more than 3 years or due to bankruptcy and death of the debtor.

Legal basis: Article 675 of the Civil Code of the People's Republic of China The borrower shall return the loan within the agreed time limit. Where there is no agreement on the term of the loan or the agreement is not clear, and it is still uncertain in accordance with the provisions of Article 510 of this Law, the borrower may return it at any time; The lender may demand the borrower to return it within a reasonable period of time.