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Direct Write-off Method
An accounting practice where uncollectible accounts receivables are written off directly against income at the time they are deemed noncollectable.
Allowance Method
An accounting technique used to account for bad debts, which estimates and sets aside a portion of accounts receivable deemed unlikely to be collected.
Uncollectible Receivables
Debts owed to a company that are considered to be uncollectable, indicating that the company does not expect to receive payment due to the debtor's inability to pay.
Percentage of Sales
A financial ratio that compares a particular expense or cost to the total sales revenue, often used to analyze cost behavior or performance.
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