Once an account meets these criteria, it is ready for removal from the active accounts receivable ledger. Criteria indicating an account is uncollectible include customer bankruptcy, confirming inability to pay. Prolonged non-payment, despite diligent collection efforts over 90 to 180 days past due, signals uncollectibility. This can include instances where legal action has been pursued… Continue reading 3 3 Bad Debt Expense and the Allowance for Doubtful Accounts Financial and Managerial Accounting