CHARGE-OFF
Eliminate or write off.
The term charge-off is used to describe the
process of removing from the records of a com-
pany something that was once regarded as an
asset but has subsequently become worthless.
A classic case is the bad debt, which is an
uncollectible debt. A bad debt is a permissible
business tax deduction, and a non-business bad
debt may also be claimed as a charge-off in the
year the debt becomes entirely worthless.
Charge-off is generally used in reference to a charge or debt that is not paid when due.
