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 ...

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 School ...

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 ...

Amazon estimates its customers won't be able to pay for $400 million worth of contracts from last quarter as the coronavirus outbreak portends a deep recession and slow economic recovery. In its ...

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 ...