An account receivable that cannot be collected by the provider or a collection agency is called bad debt. to deduct a bad debt, the amount must have been previously included in the provider's income.
The balance of money owed to a business for goods or services delivered or utilized but not yet paid for by clients is known as accounts receivable (AR). On the balance sheet, accounts receivable are shown as a current asset. Any money that customers owe for purchases they made using credit is known as AR.
The money that clients owe your business for goods or services for which invoices have been issued is known as accounts receivable. On the balance sheet, current assets are listed as the total amount of all accounts receivable, which includes bills from clients for goods or services provided to them on credit.
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