Uncollectible account

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Uncollectible account

An account which cannot be collected by a company because the customer is not able to pay or is unwilling to pay.

Uncollectible Account

Accounts receivable that a company cannot collect because the client is unable or unwilling to pay. If the client is simply unwilling to pay, the company can sue to collect what is owed; however, this incurs its own expenses and may not be worth the effort. If the client is unable to pay, for instance because of bankruptcy, the company writes off the amount lost as bad debt. This reduces the company's revenue, but also reduces its taxable income.
References in periodicals archive ?
In a similar fashion, the IRS attempted to raise additional revenue by no longer permitting companies to follow the accrual accounting method for bad debts whereby estimates of uncollectible accounts are made in each period of sales and matched against those sales in the income statement.
As part of the continuing review, principal findings to date include the following: the company did not appropriately reconcile its contractual allowance estimates for discounts and price concessions with cash subsequently received in respect of prior period patient claims, and it did not record a reserve for uncollectible accounts across all of its payer categories during the Non-Reliance Periods.
CARTI's provisions for uncollectible accounts dropped 36 percent to $3.7 million in the most recent fiscal year.
Negative rating actions could occur if there is a deterioration of its operating performance and credit profile in the beverage businesses, higher working capital requirements due to uncollectible accounts at Finbe, or debt-financed acquisition leading to total debt/EBITDA above 2.5x on a sustained basis.
The lender increased the client's line of credit, unaware that the accounts receivable balance included a number of aged and uncollectible accounts.
DTE sought $51.34 million for processing uncollectible accounts and the MPSC concurred.
The risk management consists of the input item that is the output of operating performance output item (NPLs) and two output items including nonaccrual loans and allowance for uncollectible accounts. The network production process structure with NPLs is shown in Figure 2 and the variables are as defined in Table 1.
Go through your uncollectible accounts from the past three years and tell me how many of those accounts passed the gut check.
1.166-1(e)).Thus, for cash-basis taxpayers, a bad debt deduction is generally not allowed for uncollectible accounts receivable since these items are normally not included in income until received.
All those companies that have extended credit or services and have uncollectible accounts will now be able to recoup a portion of what's owed to them.
ance for uncollectible accounts Review analysis of doubtful accounts and bad debt expense is adequate.
The case focuses on fundamental changes to the revenue recognition model and potential changes to the timing and measurement of revenue and related transactions such as product or service warranties, merchandise returns, uncollectible accounts, and multiple deliverables.