CEVAP:

Bad debt expense is an income statement account that shows the losses incurred due to uncollectible receivables. Income statement of a firm is also affected by the uncollectible receivable amounts. The amount of expected  uncollectible receivables is reported in the income statement as an expense so that profit should not be overstated. This expense is recorded in bad debts expense account and reported as bad debts expense in the income statement.