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.
When you create the credit memo, credit the accounts receivable account and debit either the bad debt expense account (if there is no reserve set up for bad debts) or the allowance for doubtful accounts (which is a reserve account that is set up in anticipation of bad debts).t therefore charges $5,000 to the bad debt expense (which appears in the income statement) and a credit to the allowance for doubtful accounts (which appears just below the accounts receivable line in the balance sheet). A month later, ABC knows that a $1,500 invoice is indeed a bad debt.