anichka
May 10, 2009, 02:31 AM
What does irrecoverable debts and allowance mean?
annalizagaspar
May 10, 2009, 05:33 AM
Irrecoverable debts are those receivables – whether with interest – that can be reasonably ascertained that their holders will not pay.
Allowance for doubtful accounts, on the other hand, is an estimate of the debts that might not be collected – this means that the company is not reasonably certain about the collectability of the debts.
For more information go to Irrecoverable Debts and Allowances (http://www.scribd.com/doc/4757604/Irrecoverable-Debts-and-Allowances)
~liza
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