bad debt reserve
Definition
An amount set aside as reserve for bad debts. In general, companies make an estimate of bad debt expenses that might be incurred in the current time period based on past records as part of the process of estimating earnings. Most companies keep a bad debt reserve in the expectation that some small percentage of their creditors will not pay them in full. If the bad debt reserve is accurately estimated, then a company's net income will not be reduced when the debts are actually written off as being uncollectable.
This content can be found on the following page:
http://www.investorwords.com/385/bad_debt_reserve.html
email to a friend
 print this definition
 cite this definition
 link to this page
Copy and paste this HTML in your website to link to this page
Related Research Articles from the InvestorGuide.com University
Income and Expenses
Information on necessary steps in any budgeting process. Topics include determining your income, determining your expenses (whether they are fixed committed expenses, variable committed expenses, or discretionary expenses), and comparing the two.
Goals and Progress
Continuing the discussion of our simple 7 step budgeting process, this article includes information on how to set goals, and consequently how to achieve them.
Introduction to Budgeting
Learn how to get your financial house in order. Here we describe the overall approach we recommend: choose a system, calculate your current income and expenses and compare the two, set specific goals and monitor your progress as you work toward them.
Featured Sponsor
|
