Allowance for doubtful debts: Companies generally make credit sales to improve their business and expand their customer base. When a credit sales is made the amount that the company has to receive from its customers is known as receivable. Usually all the customers does not repay the amount they owe to the company and hence there are chances of some not repaying the amount and these are called as bad debts . The company usually estimates that a portion of its receivables will become bad debts and create provisions for the same. This provision is called as allowance for doubtful debts. What was Whirlpool’s allowance for doubtful accounts at December 31 st 2015 and 2016??

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Chapter 5, Problem 95.2C

To determine

Concept introduction:

Allowance for doubtful debts:

Companies generally make credit sales to improve their business and expand their customer base. When a credit sales is made the amount that the company has to receive from its customers is known as receivable. Usually all the customers does not repay the amount they owe to the company and hence there are chances of some not repaying the amount and these are called as bad debts. The company usually estimates that a portion of its receivables will become bad debts and create provisions for the same. This provision is called as allowance for doubtful debts.

What was Whirlpool’s allowance for doubtful accounts at December 31^st 2015 and 2016??

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