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