Doubtful Account definition
Examples of Doubtful Account in a sentence
All of such accounts receivable are generally due within 30 days after being accrued on the books of the Seller and have been collected, or are collectible within 180 days after billing, in the full aggregate recorded amounts thereof, less, in the case of the accounts receivable reflected on the Balance Sheet, an allowance for doubtful accounts in the amount of two (2) percent of the Accounts Receivable balance (the "Doubtful Account Reserve") as shown on the Balance Sheet.
Seller hereby guarantees to Buyer the collection of the accounts receivable and notes receivable of the Company in existence as of the Closing; provided, however, Seller shall not be liable for doubtful accounts which do not exceed, individually or in the aggregate, US$74,125.70 (the "Doubtful Account Allowance").
Subject to the Doubtful Account Allowance, on the second anniversary of the date of the Closing, Seller shall pay to Buyer an amount equal to all then outstanding accounts receivable and notes receivable which were in existence on or before the date of the Closing.
The Doubtful Account Reserve has been mutually agreed to by Sellers and Buyer.
The parties shall then adjust the Doubtful Account Percentage for the following year to equal the percentage of accounts that were uncollectable in the prior Contract Year (rounded to the nearest tenth of a percent), up to the maximum Doubtful Account Percentage of 5%.
In the event the Company collects, in respect of the Company's accounts receivable and notes receivable as of the date of Closing, an amount in excess of such accounts receivable and notes receivable net of the Doubtful Account Allowance by the second anniversary of the date of the Closing, then Buyer shall pay Seller an amount equal to such excess.
On September 30, 1998, Information Solutions shall pay to Buyer the amount, if any, by which the actual amount of uncollected accounts receivable which are included in the Purchased Assets exceeds the Doubtful Account Reserve as of September 5, 1998; and Buyer shall assign such accounts to Information Solutions.
All of such accounts receivable are generally due within 30 days after being accrued on the books of the Sellers and have been collected, or are collectible within 180 days after billing, in the full aggregate recorded amounts thereof, less, in the case of the accounts receivable reflected on the Balance Sheet, an allowance for doubtful accounts in the amount of $20,000 (the "Doubtful Account Reserve") as shown on the Balance Sheet.
Seller shall have the right to contact, at any time prior to or following the Closing, any customer of the Outdoor Group Entities in respect of which a Doubtful Account was established to instruct such customer to make payments to Seller such that Seller may collect upon such Doubtful Account.
Any such Receivable which is outstanding at February 28, 1999, is referred to herein as a "Doubtful Account." With respect to any Doubtful Account, Buyer may, at its option, concurrent with the final determination of Net Tangible Assets and 1998 AEBIT, transfer any such Doubtful Account to Sellers.