Why do enterprises have bad debts? How to determine the loss of bad debts in accounting? (Financial accounting issues)

Because the enterprise accounts receivable can't be collected, it leads to bad debts, which is simply understood as the debtor's inability to repay for some reason.

Conditions recognized as bad debt loss:

1. Accounts that cannot be recovered after the death of the debtor;

2. The amount that cannot be recovered after the debtor goes bankrupt and his bankrupt property is paid off;

3. The debtor fails to perform its debt service obligations for a long time, and there is sufficient evidence to show that it is impossible to recover or recover the accounts with little possibility.

4. Each of the above three conditions is sufficient, and the third condition requires accountants to make professional judgments. China's current system stipulates that the decision-making power of bad debt losses of listed companies lies in the board of directors or shareholders' meeting.