Allowance for bad debts

Definition:

Also called reserve for bad debts, it is an estimate of uncollectable customer accounts. It is known as a "contra" account because it is listed with the assets, but it will have a credit balance instead of a debit balance. For balance sheet purposes, it is a reduction of accounts receivable.

Related terms:

Right to Setoff

Net Profit Margin (NPM Pre-Tax)

Useful articles:

»	Taking Control of Your Workspace
»	Organization Tips That Add More Hours To Your Day
»	Ingredients of Positive Sales Presentations
»	The Ultimate Sales Improvement Skill

Stock Market

Hows your stock picks going? Is the stock market treating you nice? Find out with our calculator.

Capital gain

Money gurus are always preaching long-term investing - generally it is much lower than regular

Student Loan

If you are in pursuit of higher learning and want to figure the cost you are in the right place.

Browse by categories

Accounting	Advertising	Banking
Bankruptcy	E-Commerce	Economics
Finance	Law	Investment
Insurance	Marketing	Real estate
Statistic	Trade	Purchasing

Featured Articles:

Agent Recruitment

Make Your Company #1 In The Marketplace

Change is the only constant in real estate. Associates are often changing firms for a variety of reasons. For Brokers, knowing how to recruit the best agents, and how to know when they are ready to... [ more... ]

Motivation

Keeping A Journal - One Of The Three Treasures To Leave Behind

If you're serious about becoming a wealthy, powerful, sophisticated, healthy, influential, cultured and unique individual, keep a journal. Don't trust your memory. When you listen to something valu... [ more... ]

Marketing

Building Loyalty Through Creative Contact

The beautiful thing about the digital revolution is how it has simplified our lives. We can use the advanced computer technology and online presence to free up more time to spend with our lov... [ more... ]

Terms

Define Your Own Formula For Success

3 Business Survival Tips to Keep Your Business's Lights ON!

Small Business ‘No’ How – Don’t Give Away the Farm

Too Many Choices

Practice the Golden Rule of Referral Giving

Do you know what is