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What was the U.S.-European Phased Adaptive Approach (EPAA)?
Bad Debt Expense
The cost associated with accounts receivable that a company does not expect to collect because customers default on their payments.
Allowance Method
An accounting technique used to estimate and account for potential uncollectible accounts receivable and bad debts.
Uncollectible Receivables
Debts owed to a company that are deemed unrecoverable and are written off as a loss because the debtor is unable to pay.
Allowance for Doubtful Accounts
An estimation of the amount of accounts receivable that may not be collected, which is used as a contra asset to adjust the net value of accounts receivable.
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