Bad Debts

From Knowledge base

Allowable or Unallowable: Unallowable

Source: Federal Acquisition Regulation (FAR)

Bad Debts - FAR 31.205-3

Summary

Bad debts, including actual or estimated losses arising from uncollectible accounts receivable due from customers and other claims, and any directly associated costs such as collection costs, and legal costs are unallowable. This cost principle also applies to other business transactions and employees.[1]

References and Notes

  1. FAR 31