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Accounts Receivable Method
A technique for estimating the amount of uncollectible accounts receivable and setting aside an allowance for bad debts, reflecting more accurate financial statements.
Allowance for Doubtful Accounts
A contra asset account that reduces the total receivables on the balance sheet by the amount estimated to be uncollectible.
Aging Accounts Receivable
A method of categorizing accounts receivable based on how long an invoice has been outstanding, used to identify potential bad debts.
Period of a Note
The duration of time from when a promissory note is issued until it is due for repayment.
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