# Allowance for credit losses

> Allowance for credit losses — The contra-asset holding the expected credit losses on receivables, so AR is presented at the amount expected to be collected.

Source: https://lopifi.com/glossary/allowance-for-credit-losses
Part of: Lopifi — US GAAP books on autopilot, reviewed by a CPA (https://lopifi.com)

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**What is allowance for credit losses?** In accounting, allowance for credit losses means the contra-asset holding the expected credit losses on receivables, so AR is presented at the amount expected to be collected.

## Words this system refuses for it

- bad debt reserve
- allowance for doubtful accounts (pre-CECL)

- **Category:** Receivables
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** credit, asset