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Contra Asset Account
An account on a company's balance sheet representing deductions from the gross amount of an asset, such as accumulated depreciation on fixed assets.
Allowance for Doubtful Accounts
An accounting method used to estimate the portion of a company's receivables that may not be collected, reducing the accounts receivable balance accordingly.
Uncollectible Accounts
Uncollectible accounts are receivables that a company deems uncollectable and likely will not be recovered, often written off as a bad debt expense.
Percent of Sales Method
A financial forecasting approach in which accounts are projected to increase as a percentage of the projected sales level.
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