Paying users zone. Data is covered by .
Get to eBay Inc. for $13.99, or
get to whole website for at least 3 months from $49.99.
Analysis of Bad Debts
Allowance for doubtful accounts receivable (bad debts) is a contra account which reduce the balance of the company's gross accounts receivable.The relationship between the allowance and the balance in receivables should be relatively constant unless there is a change in the economy overall or a change in customer base.
Receivables Accounting Policy
Allowance for doubtful accounts and authorized credits
eBay records the allowance for doubtful accounts based upon the assessment of various factors. eBay considers historical experience, the age of the accounts receivable balances, current economic conditions and other factors that may affect the customers' ability to pay. The allowance for doubtful accounts and authorized credits was $102 million and $81 million as of December 31, 2017 and 2016, respectively.
Source: 10-K (filing date: 2018-02-05).
Allowance for Doubtful Accounts Receivable
1 Allowance as a percentage of accounts receivable, gross = 100 × Allowance for doubtful accounts and authorized credits ÷ Accounts receivable, gross
= 100 × ÷ =
|Allowance as a percentage of accounts receivable, gross||Allowance for doubtful accounts divided by the gross accounts receivable.||eBay Inc.'s allowance as a percentage of accounts receivable, gross increased from 2015 to 2016 and from 2016 to 2017.|