What are the three types of debtors?

Types of debtors

• Good debtors: - are those from where collection of debts is certain.
• Bad debts: - are those debtors from where collection of money is not possible and the amount of credit given is a certain loss.
• Doubtful debts: - are those debtors who may pay but business firm is not sure about the collection of full amount from them.