allowance for doubtful accounts

Definition

An estimated amount of bad debts, to be subtracted from a balance sheet's accounts receivable.

Use this term in a sentence

You may want to try and figure out a way to break down your allowance for doubtful accounts so you know where they stand.

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It was our auditors opinion that the allowance for doubtful accounts we had booked was insufficient given our lack of credit screening.

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The auditors evaluated the allowance for doubtful accounts to see if any other debts should be written off in the current financial statements.

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allowance net accounts receivable