Accounting features for uncollectible receivables

Abstract

Under the competitive economy, the entities tend to increase their sales by accepting the subsequent payment for the delivered goods or services. However, in an unstable economic situation, such as in the Republic of Moldova, may arise cases when customers do not have the ability to honor their payment obligations and will not pay the amounts due. In this situation, the entity will recognize uncollectible (doubtful) receivables. The purpose of the present article is to examine the problems related to the uncollectible (doubtful) receivables accounting and to emphasize the directions for their improvement in accordance with the international requirements and the current level of economic development of the local entities. JEL: M41