A bank's estimated bad debt expense associated with its loan receivables is the

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The estimated bad debt expense associated with loan receivables is commonly known as the loan loss provision. This refers to the amount of money that the bank sets aside to cover the potential losses that may arise from defaulted loans. The loan loss provision is reported as an expense in the bank's income statement, and it reduces the net income of the bank.

A Bank's Estimated Bad Debt Expense Associated with Its Loan