Where Llamas Live. The native habitat of llamas and guanacos is the cold and dry Andes Mountains region of South America, including parts of Argentina, Bolivia, Chile, Ecuador, and Peru. The sure-footed llamas run easily over the rugged mountaintops at elevations as high as 13,000 feet.
DEFINITION of 'Allowance For Doubtful Accounts'. A contra-asset account that records the portion of a company's receivables, which it expects may not be collected. The allowance for doubtful accounts is only an estimate of the amount of accounts receivable which are expected to not be paid.or example, the company may identify that it expects 4% of its sales to become bad debt, and thus it will adjust the allowance for doubtful accounts each quarter to ensure that this expected loss is reflected on the company's financial statements.
If a firm has made a sufficient provision in its allowance for doubtful accounts, reported earnings will not be penalized by bad debts when the bad debts occur. If uncollectible accounts are larger than expected, however, the firm will have to increase the size of the account and reduce reported income. Also called allowance for bad debts, reserve for bad debts. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, or visit the webmaster's page for free fun content.