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 ...

Even the most cautious businesses will sometimes sell products or services to deadbeats. Since it is impossible to identify accurately all bad apples in advance, generally accepted accounting ...

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 ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...