Calculating estimates of the collectibility of accounts receivable and auditing those estimates is difficult. This article describes three techniques for assessing allowance for doubtful accounts ...

Peter Gratton, M.A.P.P., Ph.D., is a New Orleans-based editor and professor with over 20 years of experience in investing, risk management, and public policy. Peter began covering markets at ...

To record the reserve, you would debit uncollectible accounts a $100 expense and credit allowance for uncollectible accounts, for the $100. In addition to creating the reserve, this entry ...

To set up the allowance account, debit $1,000 to the Bad Debts Expense, and credit $1,000 to the Allowances for Doubtful Accounts. Advertisement Article continues below this ad ...

Allowance for doubtful accounts and accumulated depreciation are the most common contra assets. Here's how they work: Allowance for doubtful accounts is netted from the accounts receivable balance.

Accounts uncollectible are loans, receivables, or other debts that have virtually no chance of being paid, due to a variety of reasons.

Amazon disclosed in its quarterly filing that its allowance for doubtful accounts jumped $400 million last quarter. The balance is an estimate of contracts that Amazon believes its customers won't ...