When a business makes sales on credit, even customers with the best credit record and financial standing can go bankrupt and fail to pay the bills they owe. To better match the credit risk to the ...

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 ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...