UNCOLLECTABLE BILL Meaning and
Definition
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An uncollectable bill refers to a debt or amount owed by a customer or client that is deemed unlikely or impossible to be fully recovered by a business or organization. It represents an account receivable that has little to no prospect of being collected and is typically considered a loss for the company.
Typically, uncollectable bills arise when customers are unable or unwilling to fulfill their payment obligations for a variety of reasons, such as financial insolvency, bankruptcy, fraud, or extended non-payment despite reminders and collection efforts. Despite the company's best efforts to recover the amount owed, it becomes evident that the bill cannot be collected within a reasonable period.
When a bill is declared uncollectable, companies often write it off as a bad debt expense, removing the outstanding amount from their accounts receivable. This process involves reducing the accounts receivable on the balance sheet and recognizing the loss as an expense on the income statement, consequently reducing the company's net income. Companies may also seek to claim tax deductions by reporting the uncollectable bill as a bad debt expense on their tax returns.
In summary, an uncollectable bill refers to a debt or obligation that a business determines is unlikely to be recovered and thus writes off as a loss.
Common Misspellings for UNCOLLECTABLE BILL
- yncollectable bill
- hncollectable bill
- jncollectable bill
- incollectable bill
- 8ncollectable bill
- 7ncollectable bill
- ubcollectable bill
- umcollectable bill
- ujcollectable bill
- uhcollectable bill
- unxollectable bill
- unvollectable bill
- unfollectable bill
- undollectable bill
- uncillectable bill
- unckllectable bill
- unclllectable bill
- uncpllectable bill
- unc0llectable bill
- unc9llectable bill
Etymology of UNCOLLECTABLE BILL
The term "uncollectable bill" is not derived from a specific word etymology, but rather from a combination of words with individual origins.
1. Uncollectable: The word "uncollectable" is derived from the verb "collect", which has its roots in the Latin word "colligere", meaning "to gather together". The prefix "un-" is used to indicate negation or reversal, thus "uncollectable" means something that cannot be collected or recovered.
2. Bill: The word "bill" has multiple origins. In this context, it refers to a document that specifies the amount owed for goods or services. The word "bill" comes from the Middle English word "bille", derived from the Old English word "bile", meaning a written document, note, or formal declaration.
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