Note---On the Cyert-Davidson-Thompson Doubtful Accounts Model

Jos A. M. van Kuelen, Jaap Spronk and A. Wayne Corcoran
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Jos A. M. van Kuelen: Erasmus University, Rotterdam
A. Wayne Corcoran: Baruch College and University of Massachusetts

Management Science, 1981, vol. 27, issue 1, 108-112

Abstract: The results of the classical Cyert, Davidson, and Thompson (CDT) model for estimating the allowance for doubtful accounts could be made more valuable by correcting one flaw. The CDT model rests on the total balance method of aging dollars and, as presented, its answers cannot wisely be applied to estimate real dollar amounts. Notably, the steady state distributions derived by the model tend to underestimate actually paid dollar amounts.

Keywords: finance: working capital; forecasting: applications; probability: Markov processes (search for similar items in EconPapers)
Date: 1981
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Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:27:y:1981:i:1:p:108-112

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