Bad Debts
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
- ↑ FAR 31