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Balance Sheet Approach
A method of estimating an allowance for doubtful accounts based on the accounts receivable's ending balance, helping to present a more accurate picture of a company's financial health.
Allowance for Doubtful Accounts
An estimate of the amount of accounts receivable that may not be collectible, recorded as a contra asset account.
Uncollectible Accounts
Accounts receivable that are considered to be uncollectable from debtors, leading to them being written off as a bad debt expense.
Net Credit Sales
Sales made on credit minus any returns or allowances, indicating the actual credit sales revenue generated during a period.
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