Reserve for bad debts

Definition:

Also called allowance 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:

Lower of Cost or Market

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Raising a Child

Projects the future cost of an education and the amount you need to save to meet that cost

Loan reduction

It will help you work out how quickly you can pay off a loan if you increase your monthly repayments

Loan amortization

This calculator will help you to calculate an amortisation schedule for a loan

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