Peter Gratton, M.A.P.P., Ph.D., is a New Orleans-based editor and professor with over 20 years of experience in investing, risk management, and public policy. Peter began covering markets at ...

Allowance for doubtful accounts and accumulated depreciation are the most common contra assets. Here's how they work: Allowance for doubtful accounts is netted from the accounts receivable balance.

Amazon disclosed in its quarterly filing that its allowance for doubtful accounts jumped $400 million last quarter. The balance is an estimate of contracts that Amazon believes its customers won't ...

The allowance for doubtful accounts is an estimate of the dollar value of accounts that will ultimately become uncollectable by the company. Companies use many methods to estimate this figure.

The entire amount is written off as bad debt expense on the income statement and the allowance for doubtful accounts is also reduced by $1 million. Open a New Bank Account.

That means accounts receivable minus the value of the allowance for doubtful or uncollectible accounts -- in other words, net realizable value. Companies rely on past experience to estimate what ...

Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. ... and the allowance for doubtful accounts in Brazil.