Credit losses increased dramatically as the economy floundered. Credit managers are under increasing pressure to control losses and increases to reserves. Approximately 50% of all auditor challenges of financial statement balances involve reserves. This seminar reviews both the income statement and balance sheet perspective on bad debts, a look at several public companies and their reserves, and different methods for calculating reserves. Attendees get detailed practical insight on different methods for calculating bad debt reserves, and ideas for defending current balances to inquisitive auditors. We also review how analysis of losses and reserves can shed valuable insights for improving business performance.