Accounts Receivable

3 Months Ended

Mar. 31, 2022

Accounts Receivable [Abstract]

Accounts Receivable

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(4) Accounts Receivable:

The components of accounts receivable, net are as follows:

($ in millions)	March 31, 2022		December 31, 2021
Retail and wholesale	$	409	$	441
Other		53		74
Less: Allowance for doubtful accounts		(65)		(57)
Accounts receivable, net	$	397	$	458

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 $7 million and $10 million for the three months ended March 31, 2022 and 2021, 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 three months ended March 31, 2022 was as follows:

($ in millions)
Balance at December 31, 2021	$	57
Provision for bad debt		7
Amounts charged to revenue		11
Write offs charged against the allowance		(9)
Other		(1)
Balance at March 31, 2022	$	65