# Bad debt expense

> Bad debt expense — The P&L charge that builds the allowance for credit losses — the provision, not the write-off.

Source: https://lopifi.com/glossary/bad-debt-expense
Part of: Lopifi — US GAAP books on autopilot, reviewed by a CPA (https://lopifi.com)

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**What is bad debt expense?** In accounting, bad debt expense means the P&L charge that builds the allowance for credit losses — the provision, not the write-off.

## Words this system refuses for it

- write-off

- **Category:** Receivables
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** allowance-for-credit-losses, write-off, expense, credit