Accounts Receivable

9 Months Ended

Sep. 30, 2023

Accounts Receivable [Abstract]

Accounts Receivable

(4) Accounts Receivable:

The components of accounts receivable, net are as follows:

($ in millions)	September 30, 2023		December 31, 2022
Retail and wholesale	$	406	$	416
Other		76		69
Less: Allowance for doubtful accounts		(33)		(47)
Accounts receivable, net	$	449	$	438

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 $24 million and $19 million for the nine months ended September 30, 2023 and 2022, respectively.

In accordance with ASC 326, we performed calculations to estimate expected credit losses, utilizing rates that are consistent with our 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 nine months ended September 30, 2023 was as follows:

($ in millions)
Balance at December 31, 2022	$	47
Provision for bad debt		24
Amounts charged to revenue		11
Write offs charged against the allowance		(49)
Balance at September 30, 2023	$	33