

	Successor		Predecessor

($ in millions)	June 30, 2021		December 31, 2020

Retail and wholesale	$	447	$	608
Other		75		75
Less: Allowance for credit losses		(18)		(130)
Accounts receivable, net	$	504	$	553

As of April 30, 2021, the fair value of our net accounts receivable balances approximated their carrying values; therefore, no fair value adjustment for fresh start accounting was required. In estimating the fair values of receivables from certain of our wholesale customers, we evaluated ongoing billing disputes and the current status of settlement discussions. The final settlements with these customers may differ significantly from our estimates. See Note 5 for additional detail.

We maintain an allowance for credit losses based on the estimated ability to collect accounts receivable. The allowance for credit losses is increased by recording an expense for the provision for bad debts for retail customers, and through decreases to revenue at the time of billing for wholesale customers. The allowance is decreased when customer accounts are written off, or when customers are given credits.

The provision for bad debts was $4 million and $14 million for the one and four months ended April 30, 2021, respectively, and $10 million and $24 million for the three and six months ended June 30, 2020, respectively.

In accordance with ASC 326, Frontier performs its calculation to estimate expected credit losses, utilizing rates that are consistent with the Company’s write offs (net of recoveries) because such events affect the entity’s loss given default experience.

Activity in the allowance for credit losses for the two months ended June 30, 2021 was as follows:



	Successor

($ in millions)

Balance at April 30, 2021	$	-
Provision for bad debt		(6)
Amounts charged to switched and
nonswitched revenue		(12)
Balance at June 30, 2021	$	(18)