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Factor.
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Adjustment
A process of altering the value of accounts to more accurately reflect their true value at the end of an accounting period.
Balance Sheet Approach
A method of estimating an allowance for doubtful accounts based on the accounts receivable's ending balance, helping to present a more accurate picture of a company's financial health.
Allowance for Doubtful Accounts
An estimate of the amount of accounts receivable that may not be collectible, recorded as a contra asset account.
Uncollectible Accounts
Accounts receivable that are considered to be uncollectable from debtors, leading to them being written off as a bad debt expense.
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