Impact of customer debt on business financial statements

The article presents a checklist for calculating and reflecting allowance adjustments for doubtful debts in the financial statements of a business. The influence of the amount of the provision for debts on the indicators of liquidity and profitability of the business is demonstrated. Recommendations are given on how to use the mechanism of forming a reserve for debts when motivating sales managers. The presented material is relevant in the formation, use of financial and management reporting of a business.