Discuss and Analysis on Evaluating Accounts Receivable

General purpose of this article is to Discuss and Analysis on Evaluating Accounts Receivable. Here briefly focus on Evaluating Accounts Receivable in accounting term. Businesses owners know that some customers who receive credit won’t pay their account balances. These uncollectible accounts may also be called bad debts. Companies use two ways to account for bad financial obligations: the direct write‐off method and the allowance method. Here briefly discuss on these two types of bad financial obligations with proper example and calculation.