Examlex
The modified Pastin approach adds the following concepts to stakeholder impact analysis.
Balance Sheet Approach
A method of estimating allowances based on the balances of particular accounts, focusing on the assets and liabilities reported on the balance sheet.
Bad Debts Expense
A provision in accounting for accounts receivable that are not expected to be collected, recognizing them as an expense.
Allowance for Doubtful Accounts
A contra-asset account that represents the amount of accounts receivable a company does not expect to collect.
Uncollectible Accounts
Accounts receivable that are deemed to be uncollectible, leading to them being written off as a bad debt expense.
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