Specific charge-off method
In accounting, specific charge-off method means the federal income tax method for business bad debts: a deduction for a specific debt in the year it becomes wholly or partly worthless, never for an estimated reserve — and, for an accrual-method business, only for an amount already included in income.
Authority: 26 U.S.C. §166 (opens in a new tab). Sources
The lesson that teaches this
From the free founder back-office course, taught on one company's books, with exercises to work it yourself.
What it is not called
Each of these means something else. Use one here and an accountant reading the product notices.
- allowance
- reserve method (repealed in 1986)
Nearby in the catalog
No component names this concept outright. These sit in the same part of the system.
Also in Receivables
Defined in Lexicon. This page is generated from that document, so the two can't disagree.