Allowance method and allowance for uncollectible accounts Points) It estimates of the amounts that will ultimately be uncollectible from the trade customers and it is an contra account (to the account payables), which contains the estimated uncollectible amount that is deducte from the total Accounts Payables. It estimates of the amounts that will ultimately be collectible from the trade suppliers and it is an contra account (to the account receivable), which contains the estimated collectible amount that is deducted from the total Accounts Receivable. It estimates of the amounts that will ultimately be uncollectible from the trade customers and it is an contra account (to the account receivable), which contains the estimated uncollectible amount that is deducte from the total Accounts Receivable