Financial Statements

Allowance for Doubtful Accounts

Definition

What is Allowance for Doubtful Accounts?

An estimate of receivables that may not be collected.

Example in practice

The company records a loss allowance against overdue customer balances.

Keep learning

Income generated from selling goods or services before expenses are deducted.

The percentage increase or decrease in revenue over a period.

Direct costs attributable to goods or services sold during a period.

Gross profit expressed as a percentage of revenue.

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