Allowing customers to pay within a reasonable time of purchasing a product or service makes the purchasing process smoother and increases total sales. Unfortunately, not all customers pay their debts ...

The direct write-off of accounts receivable is primarily used by small companies for financial reporting, but is required by all companies in determining their tax obligation to the Internal Revenue ...

Allowance for Doubtful Accounts: This is a contra-asset account that represents the estimated amount of receivables that are not expected to be collected. It is deducted from the gross accounts ...