ACCOUNTS RECEIVABLE AND RELATED ALLOWANCE FOR DOUBTFALL ACCOUNTS (Block)

5. ACCOUNTS RECEIVABLE AND RELATED ALLOWANCE FOR DOUBTFUL ACCOUNTS AND SALES RESERVES

Accounts receivable are primarily attributable to advertising which has been provided and for which payment has not been received from the advertiser. Accounts receivable are net of agency commissions and an estimated allowance for doubtful accounts and sales reserves. Estimates of the allowance for doubtful accounts and sales reserves are recorded based on management’s judgment of the collectability of the accounts receivable based on historical information, relative improvements or deteriorations in the age of the accounts receivable and changes in current economic conditions.

The accounts receivable balances, and the allowance for doubtful accounts and sales reserves, are presented in the following table:

	Net Accounts Receivable
	December 31,
	2018		2017
	(amounts in thousands)

Accounts receivable	$	359,456	$	346,264
Allowance for doubtful accounts and sales reserve		(16,690)		(4,275)
Accounts receivable, net of allowance for doubtful accounts and sales reserves	$	342,766	$	341,989

See the table in Note 8, Other Current Liabilities, for accounts receivable credits outstanding as of the periods indicated.

The following table presents the changes in the allowance for doubtful accounts

Changes In Allowance For Doubtful Accounts
			Additions
	Balance At		Charged To		Deductions		Balance At
	Beginning		Costs And		From		End Of
Year Ended	Of Year		Expenses		Reserves		Year
	(amounts in thousands)
December 31, 2018	$	3,885	$	8,909	$	(3,375)	$	9,419
December 31, 2017		2,137		3,715		(1,967)		3,885
December 31, 2016		2,134		1,330		(1,327)		2,137

In the course of arriving at practical business solutions to various claims arising from the sale to advertisers of various services and products, the Company estimates sales allowances. The Company records a provision against revenue for estimated sales adjustments in the same period the related revenues are recorded or when current information indicates additional allowances are required. These estimates are based on the Company’s historical experience, specific customer information and current economic conditions. If the historical data utilized does not reflect management’s expected future performance, a change in the allowance is recorded in the period such determination is made. The balance of sales reserves is reflected in the accounts receivable, net of allowance for doubtful accounts line item on the Consolidated Balance Sheets.

As the estimated sales reserves were individually immaterial to the Company on a standalone basis prior to 2017, amounts were not separately disclosed and were included within the allowance for doubtful accounts. After the Merger with CBS Radio, the Company determined that the sales reserve figure was material and warranted separate presentation and disclosure.

The following table presents the changes in the sales reserves:

Changes in Allowance for Sales Reserves
	Balance At		Additions		Deductions		Balance At
	Beginning		Charged To		From		End Of
Year Ended	Of Year		Revenues		Reserves		Year
	(amounts in thousands)
December 31, 2018	$	390	$	14,254	$	(7,373)	$	7,271
December 31, 2017		-		390		-		390

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

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