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When Using the Analysis of Receivables Method for Estimating Uncollectible

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When using the analysis of receivables method for estimating uncollectible receivables, the amount computed in the analysis is usually the amount that would be recorded in the end-of-period adjusting entry.


Definitions:

Compensatory Damages

A monetary award in a lawsuit intended to compensate the injured party for the loss or injury they have suffered.

Plaintiff Reimbursement

The process through which a plaintiff may be compensated for costs or losses incurred, often as part of the judgment in a legal case.

Res Ipsa Loquitur

A legal doctrine that allows for the assumption of negligence on the part of a defendant when an accident is of a type that typically does not occur without negligence.

Doctrine Application

A legal principle that is applied to a case or situation to resolve it.

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