uncollectible account

uncollectible account definition - business

uncollectible account

Sales on account that cannot be collected. The customer (debtor) may be insolvent or simply refuse to pay. Sellers that are able to accurately estimate uncollectible accounts provide for an expense in the period during which the sales take place. An allowance for uncollectible accounts is reported on the balance sheet as a deduction from accounts receivable.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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