Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 22 - No. 22)

What does the term 'irrecoverable debt' refer to?

A debt that has already been paid.

A debt that is unlikely to be collected.

A debt that is fully secured.

A debt owed to the company by a bank.

Irrecoverable debt refers to an amount a business is owed that they are unable to collect.