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-   -   Bad debt expense (https://www.askmehelpdesk.com/showthread.php?t=395387)

  • Sep 11, 2009, 05:46 AM
    brentyg1
    Bad debt expense
    Would bad debt expense be included in the general and administration section or other income (expenses) on a multi step income statement?
  • Sep 11, 2009, 06:40 AM
    ROLCAM

    I would prefer the latter.
  • Sep 11, 2009, 09:41 AM
    brentyg1

    I was told it usually falls in selling expenses?
  • Sep 11, 2009, 11:41 PM
    morgaine300

    In the U.S. bad debt expense does not belong in the "other" section. It's a selling & admin expense.

    As for falling specifically under selling -- I doubt there's a rule on something like that. I look at it as the expense of not being able to collect on a debt, which I consider to be an administrative duty. I consider selling expenses to be those which are related to the process of selling itself. But that's my opinion.

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