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Bad debt
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==Doubtful debt reserve== Also known as a ''bad debt reserve'', this is a [[contra account]] listed within the [[current asset]] section of the [[balance sheet]]. The doubtful debt reserve holds a sum of money to allow a reduction in the [[accounts receivable]] ledger due to non-collection of debts. This can also be referred to as an allowance for bad debts. Once a doubtful debt becomes uncollectible, the amount will be [[Write-off|written off]].<ref>{{Cite web|title=Allowance for Doubtful Accounts|url=https://corporatefinanceinstitute.com/resources/knowledge/accounting/allowance-for-doubtful-accounts/|access-date=2021-11-16|website=Corporate Finance Institute|language=en-US}}</ref>
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