Dealing account and drawing bad debt provision are all basic essential factors for bank to control risks. The Ministry of Finance has promulgated several Provisions on Loan Loss Reserves.

对贷款的会计处理和计提呆账准备金的实践是银行业管理和控制风险的基本要素，财政部已多次颁布了有关的管理办法。

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That shows up on the big hospital chains' profit-and-loss statements, where bad debt levels have almost doubled to 10% of revenue since 2000.

FORBES: How to chop hundreds of dollars off your medical bills.

To claim a nonbusiness bad debt, you report it as a short-term capital loss subject to the capital loss limitations on a federal form 8949 (downloads as a pdf) in the year the debt becomes worthless.

FORBES: Taxes From A To Z (2013): B Is For Bad Debt Expense