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Hi, Else here. And in this video, well be exploring accounts receivable that are uncollectible. In our last video, we noted that the accounts receivable balance on the balance sheet might not be at its future economic benefit. Thats because one of the customers of ABC Company appeared to be having trouble paying their accounts receivable balance. This customer had an outstanding accounts receivable of $18,000 at the end of 2014. We know that assets have to be equal to their future economic benefit. And this accounts receivable of $18,000 will likely not have future benefit, because the customer may never pay. What should be done about this customer? Well, depending on how sure we are that well never get paid, we might write off the accounts receivable. But what if were uncertain? What if we think the customer may pay, say, next year? That would mean that at December 31, 2014, this is actually a good accounts receivable. Its still collectible. In that case, we would not write off t
