When companies do business on credit, they have accounts payable and accounts receivable. They represent accrued revenues and debts that will eventually come due. But what happens when your accounts ...

The allowance method is the means by which companies are able to better anticipate and prepare for the loss that will occur from customer accounts that will be uncollectible in the future. Unlike the ...

Once it becomes obvious that your business is not going to collect an outstanding receivable, you make a decision to write off the debt. If your customer later pays you for the debt, you must account ...

In a perfect world, you would be paid for the goods or services that you have provided to a customer or client — each and every time you provide them. Unfortunately, we don’t live in such a world and ...

Most companies sell their products on credit, for the convenience of the buyers and to increase their own sales volume. The term bad debt refers to outstanding debt that a company considers to be ...