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Allowance Method
An accounting technique used to estimate and account for bad debts, where companies anticipate some accounts receivable will be uncollectible.
Uncollectible Receivables
Amounts owed to a company that it does not expect to recover, often treated as a bad debt expense.
Allowance for Doubtful Accounts
A contra-asset account that reduces the total receivables on the balance sheet to reflect the amount expected to be uncollectable.
Allowance for Doubtful Accounts
An accounting method that reduces accounts receivable on a company's balance sheet by estimating the amount of receivables that will not be collected.
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