The allowance method is required by companies that comply with generally accepted accounting principles. The method is used to estimate and accrue to the general ledger the financial risk of customer ...

When a business makes sales on credit, even customers with the best credit record and financial standing can go bankrupt and fail to pay the bills they owe. To better match the credit risk to the ...

Learn how double-entry accounting records transactions twice, ensuring balance and accuracy by showing both a credit and a ...