Allowance Method Definition
What Is the Allowance Method?
Allowance method is a method of matching the uncollectible account expense and the sales as yet uncollected for the period with the sales for the period. Requires an estimate of the uncollectible account expense in the period of the sale.
About the Author
True Tamplin, BSc, CEPF®
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.