Uncollectible Accounts in Accounts Receivables
Uncollectible accounts receivable are a type of liability that arises from the practice of collecting debts. Uncollectible accounts are those that are too difficult or impossible to collect. There are three types of uncollectible accounts: past-due accounts, doubtful accounts, and recovered accounts. Past-due accounts are those that have been paid but are now past the due date. Doubtful accounts are those that have some aspect that makes it difficult to determine whether the debt is owed. Recoverable accounts are those that have already been paid but are still subject to dispute. The main reason why companies have uncollectible accounts is that it is usually more difficult than normal to collect debts.
