Quarterly report pursuant to Section 13 or 15(d)

Accounts Receivable Accounts Receivable

v3.21.1
Accounts Receivable Accounts Receivable
 3 Months Ended
Mar. 31, 2021
Credit Loss [Abstract]  
Accounts Receivable
5. ACCOUNTS RECEIVABLE
Allowance for doubtful accounts
The Company generates trade receivables in the ordinary course of its business and provides for estimated bad debts on such receivables. The Company adopted the new accounting guidance, ASU 2016-13, Measurement of Credit Losses on Financial Instruments on January 1, 2020. As a result of adopting the new guidance, the Company recorded a $10 million (net of a $2 million income tax benefit) cumulative effect adjustment to retained earnings at January 1, 2020.
The following table sets forth the activity in the Company's allowance for doubtful accounts on trade accounts receivables for the three months ended:
2021 2020
Balance as of January 1, $ 72 $ 47
Cumulative effect of change in accounting standard — 12
Provision for doubtful accounts 11 12
Bad debt write-offs (4) (13)
Balance as of March 31, $ 79 $ 58