Allowance for uncollectible AR amounts

January 2, 2023
January 2, 2023

Share

Q. The total percent to reserve based on the "Allowance for Uncollectible Accounts Receivables," model from the University of Illinois is 35 percent. Is the amount and percent appropriate? A. (Answered by the IOFM Advisory Panel) We have a very mature AFDA model which is driven by the credit score of the customer. The credit score is similar to a Moodys or S&P rating, but our methodology is geared to our risk tolerance as a company and the industry we are in. We do not allocate reserves to…

  Become A Member

Join IOFM today as a Professional, Business, or Enterprise Member — or upgrade your Starter Membership — to get access to this content and thousands of other Articles, Webinars, Expert Answers, Resource Downloads, and more!

Join Today


Naturally, this forum doesn’t allow the kind of full information exchange necessary for the Institute of Finance & Management (IOFM) to provide legal advice and the Expert is not a tax attorney in any event. Please understand that the nature of our responses are limited by these constraints as well as the site’s Terms of Use. If you have further questions or suggestions about how we can improve IOFM, please let us know. 
Ask The Expert is a member resource of IOFM and all advice provided is subject to site’s Terms of Use.

Subscribe to our Monthly Insider

You may unsubscribe from our mailing list at any time. Diversified Communications | 121 Free Street, Portland, ME 04101 | +1 207-842-5500