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The resting potential is:
Allowance for Doubtful Accounts
A contra-asset account representing estimated uncollectible accounts receivable due to the customer's inability to pay.
Accounts Receivable
Money owed to a company by its customers for goods or services that have been delivered but not yet paid for.
Direct Write-off
A method for recognizing bad debt expense when a specific account receivable is determined to be uncollectible, directly reducing accounts receivable and recognizing the expense.
Bad Debt Expense
An accounting expense recognized for receivables that are no longer considered collectible, impacting both the balance sheet and income statement.
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