The allowance method allows a company to estimate future losses from customers who fail to pay the amounts they owe for goods or services they received. Management determines the allowance for bad ...

Sometimes your customers or clients just don't pay what they owe. You will need to allow for or write off unpaid accounts receivable, and you need accurate records for taxes and financial statements.

James Chen, CMT is an expert trader, investment adviser, and global market strategist. David Kindness is a Certified Public Accountant (CPA) and an expert in the fields of financial accounting, ...