AT&T Inc. (T)

Allowance for Doubtful Accounts

AT&T records expense to maintain an allowance for doubtful accounts for estimated losses that result from the failure or inability of the customers to make required payments deemed collectible from the customer when the service was provided or product was delivered. When determining the allowance, AT&T considers the probability of recoverability of accounts receivable based on past experience, taking into account current collection trends as well as general economic factors, including bankruptcy rates. Credit risks are assessed based on historical write-offs, net of recoveries, as well as an analysis of the aged accounts receivable balances with allowances generally increasing as the receivable ages. Accounts receivable may be fully reserved for when specific collection issues are known to exist, such as catastrophes or pending bankruptcies.

Source: 10-K (filing date: 2018-02-20).

Based on: 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-18), 10-K (filing date: 2015-02-20), 10-K (filing date: 2014-02-21).

2017 Calculations

Ratio	Description	The company
Allowance as a percentage of accounts receivable, gross	Allowance for doubtful accounts divided by the gross accounts receivable.	AT&T Inc.’s allowance as a percentage of accounts receivable, gross declined from 2015 to 2016 but then slightly increased from 2016 to 2017.