Bad Debts

Allowable or Unallowable: Unallowable

Source: "Federal Acquisition Regulation (FAR)" is not in the list of possible values (Other, FAR, DFAR) for this property.

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.