a. Businesses often create a provision for bad debts i Of which concept is this an example?

Question:

a. Businesses often create a provision for bad debts
i Of which concept is this an example? Explain.
ii What is the purpose for creating a provision for bad debts?
iii How might the amount of a provision for bad debts be calculated?
b. What is the difference between bad debts and provision for bad debts?