Examlex
The numerator of the fraction is:
Bad Debts Expense
An expense reported on the income statement, accounting for the estimated amount of accounts receivable that are not expected to be collected.
Allowance Method
The allowance method is an accounting technique used to estimate and prepare for the amount of accounts receivable that may not be collectible.
Journal Entries
Records of financial transactions in the accounting system, detailing debits and credits to various accounts.
Allowance for Doubtful Accounts
A contra-asset account used to estimate the portion of a company's receivables that may not be collectible.
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