A cost incurred by the seller when credit customers do not pay is called:

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Bad debt expense refers to the cost incurred by the seller when credit customers do not pay their debts. This can be a significant expense for businesses and is typically accounted for as an operating expense on the income statement. A write down refers to the reduction in the value of an asset, such as accounts receivable, due to uncollectible debts. Accounts receivable refers to the amounts owed to the seller by credit customers, while an unallowable account is not a common accounting term.

A Cost Incurred by the Seller When Credit Customers Do