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Funds set aside to cover future expenses, losses, or claims. To retain; to keep in store for future or special use; to postpone to a future time.A legal reserve is a monetary account required by law to be established by insurance companies and banks as protection against losses.

A trial court reserves a point of law by setting it aside for future consideration and allowing the trial to proceed as if the question had been resolved, subject to alteration of the judgment in the event the court en banc decides the question differently.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.


v. to keep for oneself a right or a portion of the real property when transferring (conveying) a parcel of real estate to another. (See: reservation)

Copyright © 1981-2005 by Gerald N. Hill and Kathleen T. Hill. All Right reserved.
References in periodicals archive ?
An analysis of historical trends can provide useful information about an entity's past accuracy and possible biases in estimating its allowance for doubtful accounts.
By 2002, accounts receivable for commercial solid waste services had reached $138,000, and the allowance for doubtful accounts balance was $83,000.
2011-46 allows a taxpayer to compute its uncollectible amount under the NAE book safe-harbor method by multiplying the portion of the year-end allowance for doubtful accounts on the taxpayer's applicable financial statement that is attributable to current-year NAE-eligible accounts receivable by 95%.
The 2001 proposal would have required companies to extend the four-column analysis previously required for the allowance for doubtful accounts to many other similar accounts, including expected liabilities for--
The first quarter 2009 and fourth quarter 2009 net income included expenses of USD83m before tax (USD0.18 per diluted share) and USD74m before tax (USD0.16 per diluted share), respectively, associated with reorganisation, severance & acquisition costs and increases to the company's allowance for doubtful accounts.
Among the myriad of changes: contingent assets and liabilities associated with an acquisition will be recognized at the date of the acquisition at fair value, with any subsequent changes reflected in earnings (not as an adjustment to goodwill); intellectual property R & D would be capitalized at the date of acquisition; acquired accounts receivable would be recognized at fair value (that is, no separate allowance for doubtful accounts); and all acquisition-related costs paid to third parties would be expensed as incurred.
To facilitate analysis, we grouped the five scenarios into two subgroups of unethical actions--those involving direct payoffs to the individual (evading taxes, self-dealing, and insider trading) and those directly benefiting the company (inappropriate capitalization and converting allowance for doubtful accounts).
All told, the company's allowance for doubtful accounts increased 0.3 points over the 52 weeks to 6.7% of year-end receivables.
For example, auditors and their clients may disagree on the proper valuation of inventory or accounts receivable, because both parties may make different judgments regarding inventory obsolescence or the allowance for doubtful accounts. In such situations, auditors and their clients generally seek ways to resolve their disagreements.
If management establishes a realistic allowance for doubtful accounts, the net amount of accounts receivable should be a good approximation of the future debt paying capacity of these assets.
However, routine estimates, such as the allowance for doubtful accounts, probably will not require disclosure because such estimates are not usually subject to fluctuations that could materially affect the financial statements.