What term refers to accounts that are unpaid and deemed uncollectable?

Bad debt refers to accounts that are unpaid and considered uncollectable, usually after all reasonable efforts to collect have been made. In the context of revenue cycle management, bad debt is recognized when it becomes clear that payment will not be received for services rendered, often due to the account being overdue for an extended period. This classification helps organizations accurately report their financial status and assess the effectiveness of their collections processes.

Other terms, such as delinquent account, typically refer to accounts that are overdue but may still be collectable; they have not yet reached the stage of being deemed uncollectable. Inactive accounts are accounts that have not had activity for a certain duration, and closed accounts are those that have been settled or terminated. Therefore, these terms do not specifically address the status of unpaid debts that are uncollectable in the same direct manner as bad debt does.