Every business owner knows -- or should know -- that there will be some customers who can't or won't pay their bills. Conservative accounting principles require that this unfortunate fact of business ...

You write off your uncollectable accounts by establishing a bad debt expense account and an allowance for doubtful accounts. These accounts include the dollar amount of uncollectable accounts you ...

Contra accounts adjust asset values, like equipment depreciation reducing fixed assets. Increased allowance for doubtful accounts may signal rising uncollectable receivables. Companies use contra ...