How To Find The Uncollectible Accounts Expense. Estimating for uncollectible accounts is necessary if you want to ensure solid and proper financial management and accurate financial statements. Two methods are commonly used for recognizing uncollectible accounts expense in the books of seller.

This is the area underneath your accounts receivable balance on your balance sheet. Uncollectible accounts receivable is a loss of asset and decrease in revenue that is recognized by recording an expense known as uncollectible account expense. Doing so matches the expense to the related.