Allowance for Doubtful Accounts
Allowance for Doubtful Accounts is a contra-asset account that is subtracted from Accounts Receivable. This account accumulates the expected amount of uncollectibles as of a given date.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Allowance for Doubtful Accounts. A contra-asset account that is subtracted from Accounts Receivable. This account accumulates the expected amount of uncollectibles as of a given date.
Related concepts
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.
