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Allowance for Doubtful Accounts Rollforward Calculator

Does it tie out, and if not, where is the difference?

Opening allowance plus provision, less write-offs, plus recoveries to the expected closing balance, and the break against the ledger.

  • Runs in your browser
  • Nothing stored or sent
  • Free, no sign-up
Your figures
Example figuresIllustrative only. Type over them with your own.
Break (recorded less recomputed)
$0
Ledger less the rolled-forward allowance
Rolled-forward closing allowance
$272,000
Recorded amount
$272,000
Drawn to one scale
Rolled-forward closing allowance$272,000
Recorded amount$272,000
Break (recorded less recomputed)$0
All results
MeasureResult
Rolled-forward closing allowance$272,000
Recorded amount$272,000
Break (recorded less recomputed)
Agrees
$0
Write-offs as % of opening allowance
Over 100% means last year's allowance did not cover this year's write-offs
67.50%
How this was worked out
Work shownrecomputed as you type
Closing allowance = opening + provision - write-offs + recoveries
Break = ledger closing - rolled-forward closing
Look-back = write-offs / opening allowance

Illustrative arithmetic on the figures you enter. Check the result against your firm's methodology before relying on it.

The formulas

  • Closing allowance = opening + provision - write-offs + recoveries
  • Break = ledger closing - rolled-forward closing
  • Look-back = write-offs / opening allowance

How it works

A rollforward proves the allowance moved only through provision, write-offs and recoveries. A break means an entry hit the allowance from another account, such as a direct reclass or a write-off booked to expense.

The look-back compares this year's write-offs with the allowance that existed for them at the start. Write-offs well above the opening allowance suggest the prior estimate was low, which bears on the current estimate under AU-C 540.

Illustrative figures only. Check the result against your firm's methodology before relying on it.

Common questions

Should write-offs include accounts from this year's sales?

Yes, they reduce the allowance whenever written off. For the look-back, separate write-offs of accounts that existed at the start of the year if you can.

Does this work for a CECL allowance?

Yes. The movement logic is the same; the provision is the credit loss expense.

Where do recoveries go?

Back into the allowance under most policies. If your entity credits recoveries to income, enter zero here.

Formulas on this page are the standard definitions.

Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.

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