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If the company within its first year they will be the same . But after that they will be different because there are many accounts affect the allowance for doubtful or uncollectible accounts
Bad debts are actual figures where as allowance for bad debts are assumptions.
There is a difference in amount for bad debts and allowance for bad doubtful accounts because bad debts is referring only to the amount of the accounts uncollectible (or portion of this based on the probability of the accounts not be able to realized) for the period while allowance for doubtful accounts is the accumulation of bad debts and its revived accounts (collected accounts previously accounted as bad debts and/or written off).
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