Množina: bad debts

A debt that is unlikely to be repaid.
Bill or debt which has not been paid and is most unlikely to be paid. Bad debts eventually have to be “written off” on the profit and loss account. They are counted as a provision and are deducted from the account.
One way for medium-sized companies to avoid the problem is to employ a factor, a company which specializes in collecting debts on behalf of other companies.

Singular of bad debts is bad debt.

Cen result from many things, but they all boil down to one simple definition from an accounting point of view: uncollectible ammounts that are too small to be worth pursuing through legal channels. In the end they are written of the books to keep the accounts in balance.