Allowance for doubtful accounts receivable (bad debts) is a contra account which reduce the balance of the company 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.
Allowance for Doubtful Accounts Receivable
Based on: 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-08-31), 10-K (reporting date: 2021-08-31), 10-K (reporting date: 2020-08-31), 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31).
1 2023 Calculation
Allowance as a percentage of receivables and contract assets, gross = 100 × Allowance for credit losses ÷ Receivables and contract assets, gross
= 100 × 26,343 ÷ 12,253,529 = 0.21%
Financial ratio | Description | The company |
---|---|---|
Allowance as a percentage of receivables and contract assets, gross | Allowance for doubtful accounts divided by the gross accounts receivable. | Accenture PLC allowance as a percentage of receivables and contract assets, gross decreased from 2021 to 2022 and from 2022 to 2023. |