Provision For Bad Debts

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Please Ask Provision for Bad Debts is Allowed expense in Income tax View ?/

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Provision for bad debts treated as deductible expense under income tax, subject to accounting recognition and matching.
Provision for bad debts is treated as an allowable income-tax expense when recorded using standard accounting entries: debit bad debt expense (income statement) and credit provision for doubtful debts (balance sheet); the provision is therefore described as an expenditure for tax purposes consistent with matching and recognition principles.