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Explain the term secondary market.
Bad Debt Expense
An expense account reflecting accounts receivable that a company does not expect to collect and is considered a loss.
Allowance for Doubtful Accounts
An accounting provision made for accounts receivable that may not be collectable.
Accounts Receivable
Funds that a company's clients have not yet paid for products or services that have already been provided to them.
Allowance Method
An accounting technique that estimates and sets aside a portion of a company's receivables as uncollectable, acknowledging potential credit losses.
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