| gen. |
allowance for bad debts (Allowance for bad debts are amounts expected to be uncollected, but still with possibilities of being collected (when there is no other possibility for collection, they are considered uncollectible accounts). For example, if gross receivables are US$100,000 and the amount that is expected to remain uncollected is $5,000, net current asset section of balance sheet will be: Gross accounts receivable $100,000 Less: Allowance for bad debts $5,000 Net receivables $95,000. WK Alexander Demidov); doubtful debt reserve (Also known as a bad debt reserve, this is a contra account listed within the current asset section of the balance sheet. The doubtful debt reserve holds a sum of money to allow a reduction in the accounts receivable ledger due to non-collection of debts. This can also be referred to as an allowance for bad debts. Once a doubtful debt becomes uncollectable, the amount will be written off. WK Alexander Demidov); bad debt reserve (An account set aside by a company to account for and offset losses that arise as a result of defaults from futures loans. This figure may be calculated based on historical norms or other known information about the relative safety of the debt. Also known as a "loss reserve".  investopedia.com Alexander Demidov) |
