Allowance For Bad Debts:
It is also called Allowance for Doubtful Accounts. It is an estimate of uncollectible customer accounts.
allowance for bad debts
provision for possible uncollectibility associated with accounts receivable.
ALLOWANCE FOR BAD DEBTS
An account established to record a subtraction from ACCOUNTS RECEIVABLE, to allow for those accounts that will not be paid.
QUICK ASSET RATIO ...
Allowance for Bad Debts
Business Dictionary:
Bad-Debt Reserve
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Allowance for bad debts
An offset to the accounts receivable balance, against which
bad debts are charged. The presence of this allowance allows one to avoid severe
changes in the period-to-period bad debt expense by expensing a steady amount to ...
Allowance For Bad Debt
The amount of debt a company expects not to collect. This is subtracted from accounts receivable, so the balance sheet better reflects the company's true economic health.
American Depositary Receipt (ADR) ...
Allowance for Bad Debt
Money a company sets aside to cover the possibility that some customers may not pay their debts.
Amortization ...
Allowance For Bad Debt
A valuation account used to estimate the portion of a bank's loan portfolio that will ultimately be uncollectible.
Since not all customer debts will be collected, businesses typically record an allowance for bad debts which is subtracted from total accounts receivable.
This is why, businesses often make an allowance for bad debt, which is deducted from the total amount of accounts receivable. If payment is not made, some companies hire third party collection attorneys or agencies.
ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS - see ALLOWANCE FOR BAD DEBTS.
ALLOWANCE METHOD - the accepted way to account for bad debt. Bad debt expense may be based on the perce...
Carrying value - Amount shown on an entity's books for assets, liabilities, or owners equity, net of reductions or offsets such as for accumulated depreciation, allowance for bad debts, and bond discount; also called book value.
contra account, to accounts receivable to reflect the estimated collection losses on outstanding accounts receivable. The allowance reduces revenue. Such an allowance is generally not allowed for tax purposes. Also known as an allowance for bad debts ...
Because it generally generates a loss when it is written off, a bad debt recovery usually produces income.
In accounting, the bad debt recovery would credit the "allowance for bad debts" or "bad debt reserve" categories, ...
of expense charged against a bank's income/capital, set aside in anticipation that a proportion of the bank's financing/loan portfolio may be ultimately uncollectible. Synonyms: loan loss provision, impairment provision, allowance for bad debt." ...
 See also: Bad debt, Bad debts, Expense, Write-off, Acquisitions
  
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