What are some factors considered in estimating the amount of uncollectible accounts receivable?

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What are some factors considered in estimating the amount of uncollectible accounts receivable?

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Factors considered in estimating the amount of uncollectible accounts receivable

1. Industry Average of uncollectible accounts is one the major factor to be considered.

2. Past year trends to be considered for estimated uncollectible accounts

3. New Scenarios like political, environmental etc. to be taken into account

4. Company's credit policies also to be taken into account

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Answer 2

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What are some factors considered in estimating the amount of uncollectible accounts receivable?

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