What term refers to accounts receivable that cannot be collected?

The term that refers to accounts receivable that cannot be collected is "bad debt expenses." This term specifically denotes amounts that a business has recognized as uncollectible and therefore written off as losses in their accounting records. When a company extends credit to customers, it assumes the risk that some of these accounts may not be paid. Once it's determined that a customer will not pay their owed amount, the business documents this loss as a bad debt expense.

This accounting practice is important because it allows the business to accurately reflect its financial position by ensuring that its receivables are not overstated. Recognizing bad debt expenses helps in understanding the true profitability of the company, as income should only include amounts that are expected to be collected.

In contrast, loss prevention generally refers to efforts taken to avoid losses in a business context but does not specifically denote uncollectible accounts. Uncollectible liabilities isn't a recognized term in accounting, as liabilities represent obligations rather than receivables. Credit losses may be broadly related to uncollectible accounts but does not specifically pinpoint the act of writing them off as bad debts in financial statements.