What are the types of doubtful debts in accounting?

In accounting, doubtful debts are typically classified into two main types: specific doubtful debts and general doubtful debts. Specific doubtful debts refer to individual accounts that are identified as potentially uncollectible due to known issues, such as a customer's bankruptcy. General doubtful debts, on the other hand, are estimated amounts based on historical data and trends, applied to a broader category of accounts receivable to account for potential losses. Both types are essential for accurately assessing the financial health of a business.