Bad Debts Expense

[Aqualim]

Explain, with reference to one accounting principle why it is necessary to write off a bad debt

I was thinking Conservatism as this assumes that losses are to be recorded when probable and gains only when certain to ensure that assets and revenue aren't overstated and expenses and liabilities are understated. Therefore by writing off a bad debt we are assuming that the loss has occurred thus ensuring that once balance day arrives the asset (Debtors Control) isn't overstated.

[Akirus]

Pretty much.

[davyp3]

i concur