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Enterprise Resource Planning systems are designed to build customer relationships and loyalty.
Allowance for Doubtful Accounts
A reserve for accounts receivable that may not be collectible and is considered a contra asset on the balance sheet.
Bad Debt Expense
Represents the cost associated with accounts receivable that a company deems uncollectible, affecting the net income on its income statement.
Aging of Accounts Receivable
A process of categorizing accounts receivable based on how long they have been outstanding to estimate potential uncollectible amounts.
Allowance for Doubtful Accounts
An accounting provision made by companies to account for anticipated losses due to customers' failure to pay owed amounts.
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