The Allowance Method for Uncollectible Accounts How to Calculate Bad Debt Expense Video & Lesson Transcript

All of these steps are normal business practices, and no apologies are needed for making inquiries into the creditworthiness of potential customers. An aging of accounts receivable stratifies receivables according to how long they have been outstanding. These percentages vary by company, but the older the account, the more likely it is to represent a bad account.[…]