Irrecoverable Receivables Flashcards
1
Q
What is meant by ‘irrecoverable receivables’?
A
When a trade receivable (customer) is unable or unwilling to pay the amount owed in respect of goods sold on credit.
2
Q
What are the reasons for irrecoverable receivables?
A
- Credit customer cannot be traced.
- Not worth taking case to court.
- Customer has been declared bankrupt.
