( Accounting : Financial statements , Balance sheet )
allowance for doubtful accounts
, allowance for uncollectibles
When a bad debt occurs, it is written off the customer's account and charged against
the allowance for bad debt.
The allowance for bad debt is the amount that the company estimates it will not be able to collect from customers.
Allowance for bad debt is a provision made in a company's accounts which recognizes that some debts will
not be able to be collected.
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