Bad debt becomes an "expense" for first part and "income" for second party, do you agree?

The bad debt initailly remain as doubtful debt, once confirmed bad debt its become written off bad debt 'an expense'. 

 

For second party, the debt will always remain an outstanding item in his books of accounts and a guilt written on his soul for cheating the first party.

Yes i agree. When a lender write off its loan (asset) , it reduces its profit and is an expense. For the borrower, it is income because he has to erase liability and increase revenue

I disagree.
To the second party, the expense shouldn't be transferred to income and on the due amounts on the otherhand should remain as a liablity.
The bad debt expense is determined by one party only and is not resulting from a mutual agreement between two parties.
If the first party however reports it as a bad debt and informs the second party of clearing this debt, then and only then the second party can clear this liabilty from its records.
This could be done by crediting the expense account rather than recognizing it as a revenue...
this is my thought.
Hope it makes sense

I disagree just for the second party because , the expense must not be transferred to income

agreed as whenever lender is waveoff to the borrower, it becomes its expences and income for the borrower. 

borrower has to arase the same from the list of his/her liabilities. where as lender has to kept it aside. although lender might not be in loss due the interest which has already taken from the lender will keep him at par.

yep for the trader it is expense.. but for the other party he is commiting a sin :)

I agree bad bebt is expense of first party but I dont agree the second party is income...can't sure..

Bad debt is Provision at the year end so it is expense but income is not provision

Because depend upon the transaction how much actual amount..In Present situation market is very  competative, so many organitation is not use the word bad bedt in his financial statement. So good organisation are use "Factoring".

 

 

 

 

 

 

for the first party its ok but for the2nd party its not true. it is unethical business practices

I don't agree. Bad Debt expense for the second part will be closed to Retained Income and thus reduce the Capital Account. 

Yes I agree .i like more as liability and asset