Examlex
The output for the analysis phase is the:
Uncollectible Accounts
Debts from customers that are considered to be uncollectible and are therefore written off as an expense.
Allowance Method
A technique in accounting to estimate and deduct bad debts from accounts receivable based on historical data and projections.
Uncollectible Accounts
Accounts receivable that a company has determined it will not be able to collect due to customer default.
Direct Write-off
A method of accounting for bad debts where uncollectible accounts receivable are directly written off against income at the time they are deemed uncollectible.
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