The mean can be compared to the benchmark figure of one to two years to determine whether a firm’s allowance for doubtful accounts balance is reasonable in relation to subsequent write-offs. Meanwhile ...

Investopedia / Candra Huff The allowance for doubtful accounts is a company's educated guess about how much customers owe that will never come in. It appears on the balance sheet as a contra-asset ...

Contra accounts reduce asset values on balance sheets, crucial for accurate asset valuation. High allowance for doubtful accounts could signal future cash flow issues for a company. Depreciated ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New ...

Also, determine the current balance of "allowance for doubtful accounts." For example, assume the balance of "allowance for doubtful accounts" is $1,000 and the balance of "accounts receivable" is ...

Allowance for doubtful accounts is a common contra asset listed on a company's balance sheet under accounts receivable. When a company sells its products or services to customers on credit ...

Deep economic downturn Allowance for doubtful accounts, or bad-debt expenses, are a part of the balance sheet that records the amount of revenue the company doesn't expect to collect in cash.

The mean can be compared to the benchmark figure of one to two years to determine whether a firm’s allowance for doubtful accounts balance is reasonable in relation to subsequent write-offs. Meanwhile ...