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Account Receivable
Accounts Receivable represents the money owed to a company by its customers for goods or services that have been delivered but not yet paid for.
Allowance Method
An accounting technique used to account for bad debts by estimating and setting aside a portion of accounts receivable deemed unlikely to be collected.
Uncollectible Accounts
Accounts receivable that a company does not expect to collect and writes off as bad debt expense.
Bankruptcy
A judicial process concerning an individual or entity that cannot fulfill their financial obligations.
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