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Percent of Sales Method
A financial forecasting tool used to estimate certain balance sheet and income statement accounts based on a projected sales figure.
Uncollectible Accounts
Accounts receivable that are considered unlikely to be collected and are written off as a bad debt expense.
Credit Sales
Sales where the customer is allowed to pay for the product or service at a later date, extending credit.
Bad Debt Expense
The estimated amount of accounts receivable that is not expected to be collected.
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