Accounting and Tax Treatment of Uncollected Receivables

It is not uncommon to encounter situations in which companies do not collect their invoices issued to customers, either due to their inability to pay or as a result of the fact that they are held by a person against whom the bankruptcy/insolvency procedure has been declared. The article presents a series of theoretical and practical issues regarding the accounting and tax treatment of uncollected receivables in accordance with the applicable legislation, namely the concrete way in which the receivable can be adjusted or eliminated from the company’s records.