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I have a confusion as to whether bad debt accounts are factored into the accounts receivable of a company's balance sheet?

To clarify/illustrate my question,

If a company is expecting $3000 in future payments for services it has provided, but estimates that $1000 of this sum will never be paid, will the amount listed under accounts receivable on the balance sheet be $3000 or $2000?

Also, is this method standard/uniform in every country?

Thanks in advance

closed as off-topic by GS - Apologise to Monica, Chris W. Rea, JTP - Apologise to Monica May 3 '15 at 23:19

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Only when you actually write off the bad debt should your accounts receivable go down. There are rules for this under GAAP (Generally Accepted Accounting Principles).

For a more elaborate explanation look here: http://smallbusiness.chron.com/gaap-rules-bad-debt-42598.html http://accountingexplained.com/financial/receivables/bad-debts

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