Peter Gratton, 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 Multex (Reuters) ...

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 ...

The allowance method is the means by which companies are able to better anticipate and prepare for the loss that will occur from customer accounts that will be uncollectible in the future. Unlike the ...

A bad debt expense occurs when a customer who owes you money is unable to pay. Using the allowance method of accounting for bad debt expense, estimate the portion of your customer invoices that will ...

Discover what an allowance for credit losses means and how it's used in accounting to estimate uncollectible debts, enhancing financial statement accuracy.

Contra accounts adjust asset values, like equipment depreciation reducing fixed assets. Increased allowance for doubtful accounts may signal rising uncollectable receivables. Companies use contra ...

Investors should interpret accounts receivable information on a company's balance sheet as money that the company has a reasonable assurance of being paid by its customers at a defined date in the ...