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    beauty15's Avatar
    beauty15 Posts: 2, Reputation: 1
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    #1

    Feb 14, 2013, 01:16 AM
    Accounting questions and answers
    How to calculate doubtful debts
    beauty15's Avatar
    beauty15 Posts: 2, Reputation: 1
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    #2

    Feb 14, 2013, 01:17 AM
    How to calculate doubtful debts
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #3

    Feb 14, 2013, 12:45 PM
    There are different ways, it just depends on how your company computes it.

    One way is a flat dollar amount and another way is a percentage of sales or a percentage of accounts receivable.
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #4

    Feb 14, 2013, 10:41 PM
    You can go by past experience and determine what percentage of sales or receivables balance has been shown to be bad, you can use industry averages or you can just quess according to recent experience, such as treating everything over 90 days as bad.
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