Discussion for accounts receivable and bad debt. 

consumers, whether it be businesses or individuals, can rake up debt through having credit accounts. Keep in mind, these credit accounts can be in the form of a credit card, or having a line of credit to purchase items from a wholesaler, vendor, or individual. How is it legal for individuals/businesses to purchase items or services on an account, not pay the bill at all, and it is not considered theft? How is this no different than going to a store, taking the product off the shelf, and walking out with the product but not paying for it? To add insult to injury on the other end, the one that the debt is owed to has rules and laws they have to follow when attempting to collect that money owed to them - when they are the ones left without product or with lost time from providing their sales or services on account to someone to begin with.

Answer rating: 100% (QA)

The answer is that in most cases when a consumer agrees to open a credit account they also agree ... View the full answer