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Answer Posted / sonia
Bad debts Expenses are those expenses which are not
recovered by the debtors.Either the customer become
insolvent or refuse to pay payment...shown on dr side of
profit& loss account.
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outstanding expenses are the expenses that "unpaid"at the end of the accounting period e.g.salaries rent so they all come to under nominal accounts which is debt all expenses and losses and credit all gains since they are unpaid hence they must be credited
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