Uncollectible account

An uncollectible account is an account receivable that a customer is unwilling to pay. This situation can arise when a customer is disputing some issue regarding a billing, or has fallen into such difficult financial circumstances that it does not have the cash to make a payment. The seller typically writes off an uncollectible account after making a reasonable number of attempts to collect payment. At this point, the account may be shifted to an outside collection agency, which continues to make collection calls.

Related Courses

Credit and Collection Guidebook 
Effective Collections