What is the term for accounts receivable that cannot be collected?

The term for accounts receivable that cannot be collected is referred to as "Uncollectable Accounts." This terminology is used in accounting to describe amounts owed to a company that are deemed unlikely to be paid by the debtor due to various reasons, such as insolvency or bankruptcy. In financial reporting, businesses must evaluate their accounts receivable regularly to identify which accounts fall into this category, enabling them to adjust their financial statements accordingly by recognizing a bad debt expense.

Recognizing uncollectable accounts is an important aspect of managing credit risk and ensuring that the financial statements reflect a company’s true financial position. This process helps businesses maintain accurate records and is crucial for planning and forecasting future cash flows.

Other terms mentioned, such as "Bad Debt," are closely related but may refer to the overall concept rather than the specific accounts categorized as uncollectable. Similarly, "Accounts Payable" and "Deferred Revenue" relate to other aspects of accounting that do not pertain to receivables, making them irrelevant to the question of uncollectable accounts.