Allowance For Doubtful Accounts Overview, Information, Examples
This method focuses on the revenue assertion, matching unhealthy debt expense immediately with the gross sales that generated it. For instance, if a company has $500,000 in credit gross sales and traditionally estimates 1% shall be uncollectible, the estimated dangerous debt expense can be $5,000 ($500,000 x 0.01). This technique determines the unhealthy debt expense…