The Allowance for Doubtful Accounts is calculated by estimating the percentage of accounts receivable that may not be collected based on historical data and current economic conditions. This estimation involves analyzing past bad debt experiences, evaluating customer creditworthiness, and considering industry trends to determine an appropriate allowance amount.
Reimagine Your Order-To-Cash with AI
Touchless Receivables. Frictionless Payments.
Recommended Digital Assets for You
Suggested Resources
Reimagining the Enterprise with AI
Data-driven Finance – The Order-to-Cash Case Study
Global Order-to-Cash: Learn how digital transformation changes your 3Ws – Work, Workforce and Working Capital Cycle
Optimizing your Order-to-Cash Operations to Enhance Working Capital
Add AI to Your Order-to-Cash Process
AR Automation for JD EDwards
AR Automation for SAP
AR Automation for Oracle
AR Automation for NetSuite
AR Automation for PeopleSoft
