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Percentage of Receivables
An accounting method used to estimate the value of a company's bad debts based on a percentage of the accounts receivable.
Normal Balance
The usual balance side (debit or credit) of an account in double-entry bookkeeping, determined by the type of account (asset, liability, equity, revenue, or expense).
Financial Statement
Documents that provide an overview of a company's financial condition in both short and long term, including balance sheets, income statements, and cash flow statements.
Direct Write Off Method
A method of accounting for bad debts that involves charging unpaid invoices directly to expense when they are determined to be uncollectible.
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