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Which term is used to describe predictable changes that family's experience?
Allowance Method
An accounting technique that estimates and accounts for bad debts or credit losses in financial statements.
Uncollectible Receivables
Accounts receivable that a company does not expect to collect and writes off as a loss.
Credit Sales
Sales transactions where the payment is deferred to a future date, typically resulting in the creation of accounts receivable.
Allowance for Doubtful Accounts
An allowance for doubtful accounts is a contra-account that reduces the total receivables on the balance sheet by the amount that is estimated to be uncollectible.
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