If its highly unlikely that the amount owed by a customer will be received, then this debt is known as an irrecoverable debt. As it will probably never be received, it is written off by writing it out of the ledger accounts completely.
Was this article helpful?
That’s Great!
Thank you for your feedback
Sorry! We couldn't be helpful
Thank you for your feedback
Feedback sent
We appreciate your effort and will try to fix the article