- Allowance For Doubtful Accounts
- An estimation made by a company and documented on its balance sheet for receivables that might go uncollected.
It is standard practice for a company to have funds set aside for money that cannot be collected.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
allowance for doubtful accounts — A reserve for accounts receivable that may not be collectable. The allowance is always shown as a reduction from gross receivables used to calculate net receivables. An example of a contra asset account. American Banker Glossary … Financial and business terms
allowance for doubtful accounts — See: provision for bad debts … Accounting dictionary
Allowance For Credit Losses — An estimation of the debt that a company is unlikely to recover. The allowance for credit losses is from the perspective of the selling company that extended credit to its buyers. A certain amount of credit losses can be anticipated, and these… … Investment dictionary
allowance for bad debts — A reduction in the value of *accounts receivable. One or more *general ledger accounts are used to record allowances for bad debts, which represent the value of accounts receivable whose ultimate collection is in doubt. The allowance may be for… … Auditor's dictionary
Accounts receivable — (A/R) is one of a series of accounting transactions dealing with the billing of customers who owe money to a person, company or organization for goods and services that have been provided to the customer. In most business entities this is… … Wikipedia
doubtful — UK US /ˈdaʊtfəl/ adjective ACCOUNTING ► used to describe debts or accounts that are unlikely to be paid: »The Company has established an allowance for doubtful accounts based on the credit risk of specific customers and historical trends. → See… … Financial and business terms
accounts receivable — *Short term, invoiced amounts due from *customers for the supply of goods or services. Accounts receivable are classified as a *current asset in the balance sheet when their recoverability becomes doubtful, an *allowance for bad debts is created … Auditor's dictionary
provision for bad debts — A provision calculated to cover the debts during an accounting period that are not expected to be paid. A general provision, e.g. 2% of debtors, is not allowed as a deduction for tax purposes. A specific provision, in which specific debts are… … Accounting dictionary
provision for bad debts — A provision calculated to cover the debts during an accounting period that are not expected to be paid. A general provision, e. g. 2% of debtors, is not allowed as a deduction for tax purposes. A specific provision, in which specific debts are… … Big dictionary of business and management
Chart of accounts — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts … Wikipedia