220 CMR, 52.550
This account shall include the amount of bills for water service which have proved impracticable of collection. This includes all uncollectible bills for amounts which have been treated as operating revenues, whether the bills were contracted during the period under consideration or during a previous period.
Operating Revenue accounts which have been written off and afterwards collected, shall upon collection be credited to this account.
In case the accounting company so desires, a reserve account may be created through charges to this account. This reserve account shall at the end of each fiscal period contain only a sufficient amount to offset the estimated amount of bills for water service then outstanding that are deemed impracticable of collection. Such reserve account shall be included in balance sheet account No. 320, "Other Reserves".
220 CMR, 52.550
All uncollectible bills which have not been treated as operating revenue should be charged to the account which was originally credited.