Which term would describe the financial impact of an uncollectible debt?

The term that best describes the financial impact of an uncollectible debt is "Bad Debt". Bad debt refers to the amount of money that a company expects it will not be able to collect from its customers. This situation typically arises when customers are unable or unwilling to pay their outstanding balances, resulting in a loss of revenue for the organization.

When an account is categorized as bad debt, it highlights a specific financial challenge the business faces regarding its accounts receivable. Recognizing bad debt is important for accurate financial reporting and helps in assessing the overall financial health of the organization. It ultimately leads to adjustments in the financial statements, as businesses need to reflect the reduction in expected revenue.

While loss, expense, and write-off are related terms, they do not precisely encapsulate the uncollectible nature of the debt in the same way. A write-off refers to the action of officially marking a receivable as uncollectible, while expense pertains to the broader category of costs incurred. Loss can represent a more general financial diminishment rather than being specifically tied to uncollectible debts. Thus, "Bad Debt" is the term that accurately captures the financial impact of debts that are deemed uncollectible.