Calculating estimates of the collectibility of accounts receivable and auditing those estimates is difficult. This article describes three techniques for assessing allowance for doubtful accounts ...

Debit "allowance for doubtful accounts" in a journal entry in your accounting records by the amount of the uncollectible invoice. A debit reduces this account. In this example, debit "allowance ...

One item for this allowance for a doubtful accounts adjusting entry is "uncollectible receivables." Businesses use historical data to estimate how much to reserve for uncollectible accounts.