reserve for bad debt

reserve for bad debt

An expense item on a profit and loss statement for the current period's pro rata share of anticipated annual credit losses due to unpaid bills or defaulting tenants.

References in periodicals archive ?
Credit managers don't like to offer them, customers don't like to sign them and many a CFO view them with such skepticism they force the controller to accrue note balances in the reserve for bad debt.
Delta must also establish and maintain a reserve for bad debts.