Analysis of factors affecting bad debts

Akmal Rizdky Nst, Maya Macia Sari, Alya Ramadhani, Bella Cyintia Maramis *, Hafiza Khaira Nst and M. Rio Ghazali

Management Study Program, Faculty of Sciences Sains, Panca Budi Development University Medan, Indonesia.
 
Research Article
World Journal of Advanced Research and Reviews, 2023, 19(01), 1202–1205
Article DOI: 10.30574/wjarr.2023.19.1.1439
 
Publication history: 
Received on 07 June 2023; revised on 20 July 2023; accepted on 23 July 2023
 
Abstract: 
The purpose of this study is to find out what factors cause bad debts. The results of this study show that from the accounts receivable report. The amount of bad debts is very high and continues to increase. The factors that cause bad debts are internal factors in the form of weak credit administration systems, weak credit supervision systems, weak credit information systems and irregularities or fraud committed during the credit implementation process. Where the rules, standards, and procedures that have been established are not carried out properly. In addition to internal factors, external factors are also the cause of the high number of bad debts, where these external factors are caused by a decline in economic conditions, business failures occupied, and partners who run away, causing the number of bad debts to be quite high.
 
Keywords: 
Collectible Receivable; Internal; External; Pay Motivation; Account Receivable
 
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