Accounts Uncollectible
Barron's Banking Dictionary:
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Accounts Uncollectible
Loans in Default that have been charged off, or are likely to be charged off, as losses. Lenders report the condition of loans with principal and interest in arrears in quarterly Call Reports to bank regulatory agencies. See also Adversely Classified Assets; Charge-Off; Loan Loss Reserves.
Investopedia Financial Dictionary:
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Accounts Uncollectible
Loans, receivables or other debts that have virtually no chance of being paid. An account may become uncollectible for many reasons, including the debtor's bankruptcy, an inability to find the debtor, lack of proper documentation, etc.
Investopedia Says:
Before an account is classified as uncollectible, it usually becomes a "doubtful" account. Companies and banks keep a cash reserve for these accounts, which is a contra account to the loan or receivable account. Once an account is deemed uncollectible, it must be written off.
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Barron's Banking Dictionary
Dictionary of Banking Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.
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