Allowance for uncollectible accounts

by Richard C. Wilson on November 18, 2011

Below please find a definition of “Allowance for uncollectible accounts”

Financial Analysis Training & Glossary TermsDefined Term – Allowance for uncollectible accounts: Allowance for uncollectible accounts is also termed as allowance for doubtful accounts. Firms generally establish balance sheet accounts for offsetting unexpected bad debts. When consumers buy products or services but do not pay their bills, it is common practice for the selling company to write-off the unpaid bills as the uncollectible amount.

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