200.11 - Statewide Accounting Policy - Establishing an Allowance for Doubtful Accounts

Policy Area:  Accounts Receivable
Policy Sub Area:  N/A
Authority:  GS 147-86.21
Effective Date:  7/1/1995
Last Revision Date:  N/A
Policy Owner/Division:  Statewide Accounting


Management should establish an allowance for doubtful accounts to reflect the amount of an agency’s receivables that management estimates will be uncollectible. The establishment of an allowance account ensures that the agency’s receivables are not overstated for financial reporting purposes. 

The method of establishing an allowance for doubtful accounts is left to the agency’s discretion. However, the estimated allowance should be based upon historical data or other pertinent information relative to the receivables in question. 



Accounting Guidance


Related Documents (Memos/Forms)


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