ALLOWANCE FOR BAD DEBTS Definition

Bookmark and Share

ALLOWANCE FOR BAD DEBTS is an account established to record a subtraction from ACCOUNTS RECEIVABLE, to allow for those accounts that will not be paid.

Learn new Accounting Terms

COST IN EXCESS OF BILLINGS, in percentage of completion method, is when the billings on uncompleted contracts are less than the income earned to date. These under-billings result in increased assets. Conversely, where billings are greater than the income earned on uncompleted contracts, a liability, billings in excess of costs, results.

COMMITTED FIXED COST: See COMMITTED COSTS

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.